Wall Street Journal Op-Ed: An SEC Rule May Cost FTX Crypto Customers Billions

Originally Appeared in the Wall Street Journal  After the crypto exchange FTX filed for bankruptcy last week, Securities and Exchange Commission Chairman Gary Gensler announced that he will crack down on the “wild west” of crypto markets. Meanwhile, Reuters reported that between $1 billion and $2 billion in customer funds held by FTX had disappeared. If U.S. customers lose […]

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Wall Street Journal Op-Ed: Ron Wyden’s Plan to Gut Capital Markets

Originally Appeared in the Wall Street Journal Sen. Ron Wyden’s proposed “billionaires tax” on accumulated capital gains got thrown out of the latest version of the massive spending bill—but not before winning the endorsement of President Biden and Treasury Secretary Janet Yellen. It’s disturbing that they would even consider a plan that would put a stake […]

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Wall Street Journal Op-Ed: Gary Gensler’s Assault on U.S. Capital Markets

Originally Appeared in the Wall Street Journal  U.S. capital markets are the world’s envy. Gary Gensler’s job as chairman of the Securities and Exchange Commission is to protect and promote them. Instead he’s attacking them. After first refusing to enforce Trump-era regulations on proxy-advisory firms, which advise institutional investors how to vote on shareholder proposals, the […]

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Committee Submits Comment Letter on the SEC’s Proposal to Redefine “Dealer” and “Government Securities Dealer”

On October 19, 2022, the Committee submitted a comment letter to the Securities and Exchange Commission (the “SEC”) regarding its proposal to reshape the definitions of “dealer” and “government securities dealer” under the Securities Exchange Act of 1934 (the “Proposal”). The letter begins by briefly summarizing the Proposal. It then describes each of our five […]

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Financial Regulatory Agencies and the Rule of Law

The Committee on Capital Markets Regulation (the “Committee”) is concerned that in recent years U.S. financial regulatory agencies have increasingly forgone best practices and statutorily required regulatory process in various aspects of financial regulation, supervision, and enforcement. When financial regulators have engaged in notice and comment rulemaking under the Administrative Procedure Act (“APA”), there have […]

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Committee Submits Legal Memorandum to SEC Chair Gensler on the SEC’s Private Funds Proposal

On October 17, 2022, the Committee submitted a legal memorandum to Chair Gensler of the Securities and Exchange Commission (the “SEC”) regarding the SEC’s statutory authority for its recent rulemaking proposal on “Private Fund Advisers; Documentation of Registered Investment Adviser Compliance Reviews” (the “Private Funds Proposal”). In the memorandum, the Committee presents its analysis of […]

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Committee Staff Releases Update on Monetary Sanctions Imposed by U.S. Enforcement Agencies (for Calendar Year 2021)

On August 31, 2022, the Committee staff released an update on the monetary sanctions imposed during calendar year 2021 by public enforcement agencies with oversight of the U.S. financial system.This statement updates the staff report on “Rationalizing Enforcement in the U.S. Financial System” released in June 2018, which reviewed enforcement actions brought and monetary sanctions […]

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Committee Submits Response to SEC’s Request for Comment on Index Providers

On August 15, 2022, the Committee submitted a letter in response to a request for comment from the Securities and Exchange Commission (“SEC”) on “Certain Information Providers Acting As Investment Advisers” (the “Request for Comment”). The Request for Comment seeks input on the extent to which financial index providers, model portfolio providers, and pricing services […]

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Committee Submits Comment Letter on the SEC’s ESG Fund Disclosure Proposal

On August 15, 2022, the Committee submitted a comment letter to the Securities and Exchange Commission (the “SEC”) regarding its proposal on enhanced disclosure requirements with respect to environmental, social, and governance  (“ESG”) investment practices by registered investment companies and investment advisers. The Committee supports the SEC’s goals of “promot[ing] consistent, comparable, reliable—and therefore decision […]

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The Unprecedented Incidence of Recent Rulemakings by the SEC

On July 15, 2022, the Committee released its first in a series of visual diagrams designed to track the unprecedented scale and complexity of recent rulemaking activity by the U.S. Securities & Exchange Commission (the “SEC”).   The Committee’s “Rulemaking Incidence Diagram” depicts proposed and final SEC rulemaking actions taken under SEC Chairman Gary Gensler, […]

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