Markets News 

Airfox Ordered to Pay Back Investors of 2017 ICO

“The homepage displays statistics relating to the billions of people without bank accounts in the developing world, and identifies a potential market worth $90 billion” writes Simon Golstein for financemagnates.com. Of course, laws cannot be applied retroactively; however, the SEC ruled in July 2017 that tokens that resemble securities should register as such.According to its website, Airfox was created to offer financial services to the unbanked in emerging markets. Source: financemagnates.com Share This:

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SEC approves Nasdaq PHLX’s proposal to expand use of Snapshot functionality of Floor-Based Management System

“The proposed rule change will allow the Snapshot functionality to be used for all orders on the trading floor” reports financefeeds.com. The Trading System will reject a trade that is subject to a Snapshot if it would violate trade-though or priority rules.The Exchange has proposed to expand the use of the Snapshot functionality to all orders on the trading floor, subject to the current procedures for and the limitations on the use of Snapshot.At present, the “Snapshot” feature of the FBMS may only be used to provisionally execute certain types…

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Crypto News 

SEC Issues New Guidelines for Exchanges & Tokens as Securities

“The US Securities and Exchange Commission (SEC) this Friday issued new guidelines for actors in the crypto space” writes Tobias L Nnell for blockchainreporter.net. In a somewhat more new and startling ruling, the SEC declared that decentralized exchanges will be treated legally the same as centralized exchanges.The guidelines clarify the SEC’s position that many crypto projects raising funds through ICOs must register as securities.Both companies have agreed to pay penalties and to register their tokens as securities.The SEC’s hard stance on tokens as securities has resulted in many projects in…

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News 

SEC escalates enforcement of digital currency offerings

“CarrierEQ Inc. and Paragon Coin Inc. both agreed to refund customers who bought their currencies, register their tokens as securities, and each pay $250,000 in fines to the commission for violating securities law by failing to register their currency offerings” reports washingtonexaminer.com. They’re the second and third cryptocurrency companies to reach agreements with the capital markets regulatory agency over unregistered investment offerings.While ICOs exploded last year, raising billions, few companies registered their digital tokens as securities — meaning they would have to follow the same disclosures as a stock offering…

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SEC members begin examining ‘arcane’ shareholder-voting system

“Securities and Exchange Commission members indicated a willingness Thursday to overhaul the corporate shareholder-voting process, citing complexity that may confuse small investors as well as interest among both Democrats and Republicans in the operations of advisory firms” reports washingtonexaminer.com. On Wednesday, a bipartisan group of senators introduced legislation that would increase federal oversight of Institutional Shareholder Services and Glass Lewis, the top two advisory companies.Among the items the SEC is set to examine is the minimum financial investment that shareholders must make to file a proposal directing actions by company…

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Lawmakers push bipartisan bill reining in shareholder advisers

“But corporate executives, who make recommendations of their own before such votes, want more input into proxy advisers’ reports, particularly when their suggestions run counter to the company’s plans” reports washingtonexaminer.com. A bipartisan group of lawmakers introduced legislation Wednesday to increase federal oversight of proxy advisers, amplifying pressure on the influential firms in the run-up to a Securities and Exchange Commission review of their operations.ISS said federal legislation is unnecessary, but if it’s passed, the firm would “comply in full with the law and with the highest standards of the…

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Snap subpoenaed by DOJ and SEC over IPO disclosures

“Snap acknowledged the probes after the US government made a sealed filing in the shareholder lawsuit last Wednesday” reports nypost.com. The shareholder lawsuit further alleges that Snap misrepresented its use of smartphone notifications and other “growth hacking” tactics to spur Snapchat usage.Snap’s Snapchat messaging app has posted disappointing user growth since the company’s $3.4 billion IPO, and despite above-expectations sales growth and narrowing losses, its shares have tumbled.The previously unreported federal inquiries follow an ongoing shareholder lawsuit in which investors allege Snap misled the public about how competition from Facebook…

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Snap Subpoenaed By DOJ, SEC Over IPO Disclosures

“The current lawsuit also contends Snap misrepresented its use of smartphone notification and other so-called growth hacking strategies to boost usage of Snapchat, reported Reuters” reports pymnts.com. Investors argued in the lawsuit that Snap was dismissive about the threat Instagram was and should have attributed the slower user growth it saw in 2016 to Instagram. Source: pymnts.com Share This:

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Former CEO fined $1.5 million by SEC for tipping pro baseball players with inside info

“DeCinces and four of his tippees already settled the Commission’s insider trading claims against them” writes Francine Mckenna for marketwatch.com. The Securities and Exchange Commission settled its insider trading charges against James V. Mazzo, the former Chairman and Chief Executive Officer of Advanced Medical Optics, Inc. who agreed to pay $1.5 million for allegedly tipping information about his company’s acquisition to his close personal friend, former professional baseball player Doug DeCinces. Source: marketwatch.com Share This:

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