The primary difference between SEC and CFTC spoofing enforcement cases is the applicable federal statute. In 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act included an express spoofing prohibition (Section 747) in…
It’s rare for the SEC to make its investigative efforts public. In fact, unless information makes its way into a news outlet, court records, or a company’s investor relations communications, there will likely be…
Companies facing voluntary self-disclosure must first distinguish between mandatory and voluntary disclosure. Voluntary self-disclosure differs from disclosures that are mandated by statutes, rules, or orders. When facing voluntary self-disclosure, companies must assess several key…
There is no SEC rule that provides a general enforcement safe harbor if an individual or a company voluntarily comes forward. The concept of receiving cooperation credit is subject to the SEC’s broad discretion.…
At the bottom of our page on SEC defense, we provide a high-level overview of what this process means. Here we go into more detail. In summary: A Wells notice is a “warning shot.”…
Settling with the SEC typically progresses through a series of stages, though these are not sequential. While most companies aim to resolve matters before the filing of formal charges, resolution may also be possible…
The SEC’s enforcement staff does not have the power to prosecute criminal charges. When referred, the DOJ can open its own investigation, or it can proceed based on the SEC’s investigative findings. To do…
Under the Securities Exchange Act, the SEC generally has the authority to enforce the substantive provisions of the Act as well as its implementing rules (like Rule 10b-5) in federal court. As a result,…
The SEC scrutinizes every step of a SPAC transaction, from the SPAC IPO through to the completion of the de-SPAC. Key areas of focus include disclosures, marketing practices, conflicts, and the role of gatekeepers.…
SEC vs. CFTC: Who Regulates Cryptocurrency?The SEC and the CFTC are separate federal agencies. While they both maintain regulatory authority over various types of crypto offerings and cryptocurrency intermediaries, neither agency supervises the other.…