Expert Analysis

• The Long Reach Of Proposed Security-Based Swaps Rule

  

  The U.S. Securities and Exchange Commission's proposed security-based swap reporting rule's public disclosure provision is novel and contentious, and if it's included in the final rule, it would be a fundamental change in market structure that could chill activity in the space and incentivize market participants to use alternative derivative instruments, says Andrew Blake at Sidley.

• Opinion

  Regulators Must Avert Overreach When Targeting AI

  

  As financial regulators pursue artificial intelligence policy and related regulation, they should be wary of counterproductive interventions, which may stymie technology that could enhance forecasts and better reach the historically underrepresented, says Jack Solowey at the Cato Institute.

• ABA's Money-Laundering Resolution Is A Balancing Act

  

  While the American Bar Association’s recently passed resolution recognizes a lawyer's duty to discontinue representation that could facilitate money laundering and other fraudulent activity, it preserves, at least for now, the delicate balance of judicial, state-based regulation of the legal profession and the sanctity of the attorney-client relationship, say attorneys at Ballard Spahr.

• How Del. Cos. Weighed Officer Exculpation This Proxy Season

  

  One year after the Delaware General Corporation Law was amended to permit state corporations to exculpate covered officers, results from the 2023 proxy season show that companies are increasingly adopting the practice, despite some hurdles such as the need for supermajority approval, say attorneys at Weil.

• 2 High Court Cases Could Upend Administrative Law Bedrock

  

  Next term, the U.S. Supreme Court will be deciding two cases likely to change the nature and shape of agency-facing litigation in perpetuity, and while one will clarify or overturn Chevron, far more is at stake in the other, say Dan Wolff and Henry Leung at Crowell & Moring.

• With Equity Markets Down, Venture Lending Provides Solution

  

  Given the growth of private debt funds, new entrants in the market and equity markets remaining sluggish, more borrowers are turning to venture debt financing, with long-standing venture funds offering flexibility and expertise without the risks of larger banks, says Jennifer Post at Thompson Coburn.

• Future Of NFTs Uncertain As SEC Takes Hawkish Approach

  

  The U.S. Securities and Exchange Commission's recent and first non-fungible token enforcement action against Impact Theory raises questions about the future of digital assets and the SEC's broad interpretation of securities law, and there will be no safe space for digital assets until courts or Congress clarify the issue, says Alex More at Carrington Coleman.

• Law Firm Professional Development Steps To Thrive In AI Era

  

  As generative artificial intelligence tools rapidly evolve, professional development leaders are instrumental in preparing law firms for the paradigm shifts ahead, and should consider three strategies to help empower legal talent with the skills required to succeed in an increasingly complex technological landscape, say Steve Gluckman and Anusia Gillespie at SkillBurst Interactive.

• 5 Takeaways From SEC's First Marketing Rule Action

  

  The U.S. Securities and Exchange Commission's recent settlement — the first under the amended marketing rule — with Titan Global on charges that the fintech company misled investors shows investment advisers that they should expect close scrutiny of marketing materials and that their questions will only be answered through SEC enforcement, say attorneys at Mayer Brown.

• SEC's New Rules Likely Will Affect Cyber, D&O Insurance

  

  The U.S. Securities and Exchange Commission recently adopted cybersecurity incident disclosure rules that could create new challenges that affect how public companies assess the risk of securities, corporate governance and cyber-related lawsuits, which may implicate novel insurance coverage issues, say attorneys at Reed Smith.

• If Binance Criminally Charged, Crypto Exchanges May Exit US

  

  Unlike recent government enforcement actions against Ripple Labs and Terraform, which were isolated to those companies, should the U.S. Department of Justice pursue criminal charges against industry go-to crypto exchange Binance, it could mean exchanges deciding to stop servicing the U.S., says Andrew St. Laurent at Harris St. Laurent.

• 2nd Circ. Ruling Is Good For Syndicated Lending Stability

  

  The Second Circuit’s recent Kirschner v. J.P. Morgan Chase decision reaffirms the long-held market practice that syndicated loans are not securities, representing a positive development for the continued strength of the syndicated lending market, and demonstrating the importance of structuring loan terms to avoid mischaracterization, say attorneys at Latham.

• The Basics Of Being A Knowledge Management Attorney

  Excerpt from Practical Guidance

  

  Michael Lehet at Ogletree Deakins discusses the role of knowledge management attorneys at law firms, the common tasks they perform and practical tips for lawyers who may be considering becoming one.

• How Focus On Congruency Affects Corporate Political Activity

  

  Congruency — whether the contributions made by a company-sponsored political action committee align with the corporation's public statements on issues of social responsibility — is undoubtedly the next frontier in the battle over corporate political activity, despite the limited success of shareholder proposals on the issue, says Carol Laham at Wiley.

• Examining PayPal's Venture Into The Stablecoin Market

  

  PayPal’s recent release of a stablecoin pegged to the U.S. dollar may represent a groundbreaking innovation or could fail as others have before it, and policymakers in the U.K. and the EU will be watching the impact of this new crypto token with a keen eye, say Ben Lee and Dion Seymour at Andersen.