Expert Analysis

• Lessons From Recent FINRA Actions Against Funding Portals

  

  Two recent Financial Industry Regulatory Authority enforcement actions provide reminders for funding portals on compliance responsibilities, like keeping track of finances and avoiding engaging in broker activities, say Peter LaVigne and Christopher Grobbel at Goodwin.

• Calif. Order May Change Crypto Activity Registration

  

  While many digital asset platforms have been exempt from registration in California under the state's Money Transmission Act, a recent order from the governor calls for syncing state crypto regulation with federal rules and could significantly change compliance for financial technology providers with services in California, say attorneys at Barnes & Thornburg.

• First Impressions From SEC's Fund Disclosure Proposals

  

  Surprising elements in the U.S. Securities and Exchange Commission’s recent proposals for registered investment companies include the breadth of terms newly subject to the so-called names rule, and the prescriptiveness of fund disclosures regarding environmental, social and governance investing, say Jessica Burt and Jennifer Hillman at Stradley Ronon.

• What A Crypto Exchange Bankruptcy Filing Could Look Like

  

  There is growing concern regarding how customers of cryptocurrency exchanges will be treated if an exchange commences bankruptcy proceedings as crypto prices fall, which means customers should take proactive measures to protect their assets, say Darren Azman and Gregg Steinman at McDermott.

• Opinion

  ABA Isn't Giving Up On Diversity Efforts By Ending CLE Rule

  

  While some view the American Bar Association’s elimination of continuing legal education diversity requirements as capitulating to a Florida Supreme Court decision against the mandate, it was a strategic decision to serve Florida members while improving diversity, equity and inclusion efforts in other ways, says Tiffani Lee at Holland & Knight.

• Lateral Candidate Screening Steps To Prevent Bad Behavior

  

  Bullying and harassment are among the root causes of stress, anxiety and substance abuse in the legal profession, so law firms should take four actions to effectively screen lateral candidates and ensure they are not recruiting individuals who could jeopardize the well-being of their people, says Michael Ellenhorn at Decipher.

• How Russia Sanctions Are Affecting Compliance

  

  The wide-ranging sanctions and export controls that the U.S. and its partners have imposed on Russia in recent months pose complex compliance challenges for commercial operations, investments and financial transactions, even when there is not a direct or obvious nexus with Russia, say Anthony Rapa and Matthew Thomas at Blank Rome.

• The Varying Federal, State And Local Attitudes On Crypto

  

  While recent U.S. Securities and Exchange Commission developments show escalating intervention in the burgeoning digital asset industry, other government actors and cities are taking a more balanced approach to the growth of cryptocurrency operations, say Patrick Daugherty and Louis Lehot at Foley & Lardner.

• Issues To Watch In Decentralized Autonomous Org Case

  

  A class action filed earlier this month by users of decentralized finance platform bZx highlights novel questions of liability and duty within decentralized autonomous organizations that stakeholders should consider, say Andrew Balthazor and Ashley Shively at Holland & Knight.

• A Look At The Legal Profession Since Murder Of George Floyd

  

  Little has changed for Black attorneys since law firms promised to combat discrimination within the profession following George Floyd's murder, but on this second anniversary of his death, law firms can recommit by adopting specific strategies that set their Black lawyers up for success, say Lisa Davis and Khasim Lockhart at Frankfurt Kurnit.

• Opinion

  NY Ruling Correctly Deems Legal Finance Docs Irrelevant

  

  A New York appeals court's recent decision in Worldview Entertainment v. Woodrow joins a growing trend of decisions denying discovery of litigation funding documents, highlighting that commercial legal finance should be treated just like any other financing in commercial litigation, says Andrew Cohen at Burford Capital.

• What Sanctions Mean For Funds' Subscription Credit Facilities

  

  Given the unprecedented wave of sanctions against wealthy Russian oligarchs, lenders should be aware of the complex questions regarding funds' subscription credit facilities that can arise when an investor is sanctioned, say attorneys at Haynes and Boone.

• Crypto Cos. Should Prep For More IRS John Doe Summonses

  

  In anticipation of new reporting requirements that will go into effect in 2024, cryptocurrency exchanges and custodians should inform themselves on the John Doe summons, a unique mechanism that allows the IRS to obtain expansive information about cryptocurrency transactions, say Shivani Poddar and Andrew Heighington at Herrick Feinstein.

• Partial Student Loan Forgiveness: What Are The Implications?

  

  As President Joe Biden makes a decision on student loan forgiveness in the next few weeks — he stated support for $10,000 in relief on the campaign trail — there are legal and asset-backed security consequences that should be taken into consideration, says Lyle Solomon at Oak View Law Group.

• Opinion

  The SEC's Climate Disclosure Plan Fails Individual Investors

  

  The U.S. Securities and Exchange Commission’s historic proposal to create a new climate disclosure regime for U.S. companies is good for business, but it doesn’t line up with the commission’s mission to protect individual investors, and the SEC should reconsider its approach before it is challenged in court, says Lawrence Cunningham at GW Law.