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Aug 26, 2024 | 
law.com | Marjorie Peerce |Erin Carter
New federal and state regulations of per- and polyfluoroalkyl substances (PFAS) are a wake-up call to the fashion industry, which must immediately start scrutinizing the effects of PFAS in apparel and textiles, including potential reporting requirements, litigation and environmental liabilities. PFAS, a diverse class of over 12,000 compounds, are often called “forever chemicals” because of their strong chemical makeup and slow breakdown in the environment.
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May 14, 2024 | 
jdsupra.com | Peter Hardy |Marjorie Peerce |John D. Socknat
On April 20, 2024, the Pennsylvania Department of Banking and Securities (“DoBS”) issued a (“Policy Statement”) to “clarify” that the Department’s interpretation of the term “money” in the Pennsylvania Money Transmitter Act (“MTA”) includes “virtual currency, such as Bitcoin.” The MTA provides in part that “[n]o person shall engage in the business of transmitting money by means of a transmittal instrument for a fee or other consideration with or on behalf of an individual without first having...
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Apr 23, 2024 | 
lexblog.com | Peter Hardy |Christopher Jones |Marjorie Peerce |Peter A. Jaslow
On April 18, the Internal Revenue Service (“IRS”) issued a draft version of Form 1099-DA, a proposed information reporting form regarding certain digital asset sales and exchanges that “digital asset brokers” will need to file with the IRS and provide to the individuals involved in the sales and exchanges (“Draft Form”). The detailed and complicated Draft Form would be the first of its kind.
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Sep 18, 2023 | 
ballardspahr.com | David Axelrod |Celia Cohen |Marjorie Peerce |Michael P. Robotti
Summary The SEC’s pursuit of the crypto industry continues with its second-ever settlement of a non-fungible token (NFT) enforcement action. The SEC settled with Stoner Cats 2 LLC (SC2), which sought to finance an animated web series about cats that are exposed to their owners’ medical marijuana. The Upshot NFTs appear to be the next wave of SEC enforcement actions in the crypto space.
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Aug 31, 2023 | 
ballardspahr.com | David Axelrod |Celia Cohen |Marjorie Peerce |Michael P. Robotti
Summary The SEC’s focus on the crypto industry expanded this week to include non-fungible tokens (NFTs). In its first NFT-enforcement action, the SEC settled with Impact Theory, a media and entertainment company, over allegations that it had engaged in an unregistered offering of securities through its sale of NFTs. This action is unlikely to be the only SEC enforcement action in this space.
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Aug 29, 2023 | 
ballardspahr.com | Peter Hardy |Christopher Jones |Marjorie Peerce |Peter A. Jaslow
Summary The IRS last week issued a draft version of Form 1099-DA, an information reporting form regarding certain digital asset sales and exchanges that “digital asset brokers” would need to file with the IRS and provide to the individuals involved in the sales and exchanges. The detailed and complicated draft form would be the first of its kind.
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Aug 4, 2023 | 
ballardspahr.com | David Axelrod |Celia Cohen |Marjorie Peerce |Michael P. Robotti
Summary The Securities and Exchange Commission (SEC) is reportedly nearing a settlement with a nationally recognized statistical rating organization (NRSRO) over its failure to preserve certain credit-ratings communications sent through unapproved electronic messaging channels. This suggests that all regulated entities with similar recordkeeping requirements should anticipate heightened scrutiny in this area, regardless of the nature of their business.
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Aug 3, 2023 | 
ballardspahr.com | David Axelrod |Celia Cohen |Marjorie Peerce |Michael P. Robotti
On July 31, 2023, the Court in SEC v. Terraform Labs Pte. Ltd., 2023 U.S. Dist. LEXIS 132046 (S.D.N.Y. Jul. 31, 2023) denied defendants’ motion to dismiss the SEC’s Amended Complaint. Defendants argued that the SEC was barred from asserting that the defendants’ crypto-assets were securities because (1) the SEC did not have the authority to regulate the crypto-assets in question, and (2) the crypto-assets did not qualify as “securities” subject to SEC regulation.
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Apr 3, 2023 | 
jdsupra.com | David Axelrod |Nathaniel Botwinick |Marjorie Peerce
The past week was a busy week for cryptocurrency regulation, with new accounting standards for companies holding cryptocurrency, while the SEC continued its crackdown on cryptocurrency, alleging widespread fraud in the industry. First, the Financial Accounting Standards Board (FASB) issued a proposed accounting standards update for the accounting and disclosure of crypto assets.
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Mar 31, 2023 | 
ballardspahr.com | Marjorie Peerce |David Axelrod |Nathaniel Botwinick
Summary The past week was a busy one in the cryptocurrency sphere: The Financial Accounting Standards Board (FASB) proposed new standards for crypto assets, and the SEC released an alert urging investors to remain cautious about investing in “crypto asset securities.”The Upshot The FASB’s proposed guidelines would treat crypto assets more like traditional assets and would improve valuation accuracy.
