Insights & Regulatory Updates
Sen. Lummis Urges Second Circuit to Curb SEC’s Crypto Overreach
Senator Cynthia Lummis, R-Wyo., has thrown her support behind Coinbase Inc. in its legal battle against the U.S. Securities and Exchange Commission (SEC), urging the Second Circuit to clarify the limits of the SEC’s authority in regulating digital assets. In an amicus brief filed Friday, Lummis argued that the SEC’s enforcement actions against crypto intermediaries, including Coinbase, undermine congressional efforts to establish a clear regulatory framework for the digital asset industry.
Palo Alto Networks Insider Trading Case: Ninth Circuit Orders Resentencing
The Ninth Circuit has upheld securities fraud convictions against Sivannarayana Barama, a former Palo Alto Networks engineer who profited $7 million through insider trading. However, the court remanded the case for resentencing, ruling that the district court improperly used Barama’s trading gains as a proxy for the company’s loss without determining an actual loss.
KuCoin’s $297M Settlement Marks a Turning Point in Crypto Compliance
Crypto exchange KuCoin has agreed to pay $297 million and pled guilty to operating an unlicensed money transmitting business, following allegations of widespread anti-money laundering (AML) failures and the facilitation of over $5 billion in illicit transactions. This significant development underscores the growing scrutiny of cryptocurrency platforms by U.S. regulators and law enforcement.
Business Advisers Defeat SEC Allegations of Penny Stock Fraud
In a notable ruling, a Boston federal judge rejected the U.S. Securities and Exchange Commission’s (SEC) allegations that Roger Bendelac, a business adviser, and his brother-in-law, Thomas Capellini, participated in a $2.3 million penny stock fraud scheme. The decision followed a four-day bench trial in October and highlights the complexities of securities enforcement cases, where the evidence often lies in the fine details.
Factors U.S. District Judge with Weigh in Sentencing Former U.S. Senator Robert Menendez This Week
When U.S. District Judge Sidney Stein sentences former U.S. Senator Robert Menendez this week on federal bribery and corruption charges, he will weigh a complex mixture of factors, balancing a lifetime of public service against the gravity of the crimes. Menendez, who once donned a bulletproof vest to fight corruption in New Jersey, now faces sentencing for accepting bribes in the form of gold bars, cash, and luxury goods in exchange for political favors.
SEC Withdraws Staff Accounting Bulletin No. 121
On January 23, 2025, the SEC issued Staff Accounting Bulletin (SAB) 122, formally withdrawing the controversial SAB 121. The previous guidance, introduced under the leadership of former SEC Chair Gary Gensler, required public companies, including banks, to record customers’ cryptocurrency holdings on their own balance sheets. This requirement was intended to provide added investor protections during bankruptcies but faced criticism for its potentially burdensome implications for institutions handling digital assets.
SEC Announces Formation of Crypto Task Force 2.0
Acting Chairman Mark T. Uyeda of the U.S. Securities and Exchange Commission (SEC) announced the launch of a dedicated Crypto Task Force aimed at establishing a clear and comprehensive regulatory framework for crypto assets. Commissioner Hester Peirce will chair the task force, supported by Richard Gabbert as Chief of Staff and Taylor Asher as Chief Policy Advisor.
Trump’s SEC Leadership: A New Chapter for Cryptocurrency Regulation?
As the nation prepares for a change in leadership, the cryptocurrency industry is abuzz with speculation about the potential regulatory shift under the incoming Trump administration. With Hester Peirce and Mark Uyeda poised to take on pivotal roles at the U.S. Securities and Exchange Commission (SEC), it appears a crypto-friendly overhaul may be on the horizon. Sources close to the matter suggest that these changes could begin as early as next week.
Where TikTok Goes Next: Navigating the Uncertainty of a Landmark Ban
The Supreme Court has issued a landmark ruling with profound implications for technology, geopolitics, and the digital economy. By unanimously upholding the "Protecting Americans from Foreign Adversary Controlled Applications Act" (PAFACAA), the Court has set the stage for a legal and operational reckoning for TikTok, its Chinese parent company ByteDance, and the tech giants facilitating its presence in the U.S. market. For businesses and legal practitioners, this case illustrates the complexities of navigating an increasingly fragmented regulatory landscape.
Deadline Alert: Division I Athletes Must File for $2.8 Billion NIL Settlement
The NCAA is set to finalize a $2.8 billion settlement over name, image, and likeness (NIL) antitrust claims. This historic agreement could mean significant payouts—averaging $91,000 and up to $280,000—for eligible Division I athletes. If you played Division I basketball or football between 2016 and 2024, now is the time to act. Missing the January 31, 2025 deadline could mean losing your chance to claim your rightful share of this settlement.
Coinbase Decision: A Landmark Ruling for Crypto
The recent decision in the Coinbase case represents a pivotal moment in the ongoing dialogue between cryptocurrency innovation and securities regulation. This ruling not only addresses foundational questions about the classification of digital assets but also provides critical insights into how courts may navigate the intersection of securities laws and emerging technologies. It underscores the importance of proactive compliance and thoughtful advocacy as the crypto industry adapts to an uncertain regulatory landscape.
TikTok’s Day in Court: Supreme Court Weighs National Security Against First Amendment Rights
On January 10, 2025, the Supreme Court heard arguments in one of the most closely watched cases of the term: whether to uphold a federal law requiring ByteDance, the Chinese parent company of TikTok, to divest from the platform or cease its operations in the United States. At the heart of the case is a collision of First Amendment principles, national security concerns, and the growing influence of foreign-owned technology platforms in American life. Based on the tenor of the arguments, TikTok’s legal challenges appear uphill, with the justices expressing skepticism toward the platform’s defense.
Legal Framework for the Tokenization of Real-World Assets
The concept of tokenizing real-world assets (RWAs) has emerged as a transformative innovation at the intersection of technology, finance, and law. By leveraging blockchain technology to digitize ownership, tokenization is reshaping how we perceive, manage, and trade physical and intangible assets. From real estate and precious metals to intellectual property and collectibles, tokenization offers unparalleled opportunities for fractional ownership, liquidity, and efficiency. At its core, tokenization represents the digitization of assets into tokens recorded on a distributed ledger, allowing these assets to be bought, sold, and managed more effectively.
Why Startups Should Consider Fractional General Counsel Services
At Anderson P.C., we’re thrilled to announce that we now offer this innovative legal solution to startups. Our fractional GC services are designed to help founders focus on what they do best—building their business—while we handle the legal complexities. If you’re interested in learning more about how fractional General Counsel services can benefit your startup, contact us today.
Court Grants Coinbase’s Motion for Interlocutory Appeal, Stays SEC Litigation
In a pivotal development for the cryptocurrency industry, Coinbase Inc. has successfully secured the right to pursue an interlocutory appeal in its ongoing legal battle with the Securities and Exchange Commission (SEC). This rare legal maneuver allows the U.S.-based cryptocurrency exchange to challenge a critical issue in the case before the litigation proceeds further.
Operation Chokepoint 2.0: Regulatory Overreach and the Battle for Crypto’s Future
In the wake of newly uncovered Federal Deposit Insurance Corporation (FDIC) documents obtained through Freedom of Information Act (FOIA) requests, the debate over “Operation Chokepoint 2.0” has escalated to a fever pitch.
The SEC’s $10 Billion Dilemma: The Challenges of Collecting Financial Penalties
The Securities and Exchange Commission (SEC) has long been heralded as a vigilant enforcer of securities laws, imposing billions of dollars in penalties on violators each year. However, a recent Wall Street Journal report reveals a sobering reality: over the past decade, the SEC has written off nearly $10 billion in fines it was unable to collect. This highlights the significant hurdles the agency faces in enforcing financial sanctions, particularly against individuals and entities adept at evading payment.
Corporate Transparency Act Reporting Obligations Reinstated with New Deadlines
On December 23, 2024, the U.S. Court of Appeals for the Fifth Circuit granted the U.S. government’s request for an emergency stay, effectively reinstating enforcement of the Corporate Transparency Act (CTA). The stay lifts a nationwide preliminary injunction issued earlier this month by the U.S. District Court for the Eastern District of Texas, which had temporarily blocked CTA compliance requirements and paused the January 1, 2025, reporting deadline.
Anderson’s Guide to Effective Independent Internal Investigations
Organizations face heightened scrutiny as financial misconduct, fraud, and ethical breaches become increasingly complex. A well-executed internal investigation is more than just a response to misconduct—it’s an opportunity to demonstrate accountability, strengthen compliance frameworks, and protect your organization’s reputation.
At Anderson P.C., we approach internal investigations with precision, independence, and the strategic foresight our clients demand. Whether you are addressing allegations of misconduct or reinforcing your compliance program, our tailored methodologies ensure thorough, defensible, and results-oriented outcomes.
A Quick Guide on AI in Corporate Compliance in 2025
As we step into 2025, artificial intelligence (AI) continues to redefine corporate landscapes, becoming both an asset and a focal point for regulatory scrutiny. In September 2024, the Department of Justice (DOJ) announced a significant shift in its Evaluation of Corporate Compliance Programs (ECCP), highlighting the risks associated with AI technologies. For organizations, this move underscores an urgent need to integrate AI risk management into their compliance frameworks.