US SEC issues no-action letter on compressed digital asset settlement process
In issuing a no-action letter, the SEC took a more nuanced position on virtual assets. The U.S. Securities and Exchange Commission (SEC) took a major step toward streamlining digital asset securities settlement by compressing the previous four-step process into three in a bid to reduce operational risk for broker-dealers.The SEC issued a no-action letter on Sept. 25, stating it will not penalize any broker-dealer operating an alternative trading system (ATS) that trades digital asset securities — if they adhere to the new guidelines.According to the regulator, several ATS want to follow a....
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Both parties are currently not considering terms for a pretrial settlement. The changing of the guard at the United States Securities and Exchange Commission seems to have affected any possible pretrial settlement in the SEC’s case against Ripple.This conclusion was part of a joint discovery letter filed on Monday before Judge Analisa Torres of the U.S. District Court for the Southern District of New York.Commenting on the prospects of a pretrial settlement, the letter reads:“Counsel for the parties have met and conferred and, having previously discussed settlement, do not believe there is....
JPMorgan Chase has teamed up with Digital Asset Holdings on a trial blockchain initiative that aims to make the trading process more efficient and cost effective. As reported in the FT, several uses of the technology are to be examined, including addressing liquidity mismatches in loan funds. These funds give investors quick access to money, although the underlying assets often take far longer to sell due to a complex manual process that must deal with multiple parties. “To sell a loan is a very cumbersome, time-consuming process; settlement can take weeks,” Daniel Pinto, CEO at JPMorgan's....
Post-trade market infrastructure provider DTCC, the Depository Trust & Clearing Corporation and blockchain startup Digital Asset Holdings have announced plans to develop distributed ledger solutions to improve the current process he clearing and settlement of repurchase agreement (repo) transactions. In a new announcement by DTCC and Digital Asset, the firms will develop and test a distributed ledger or blockchain-based solution to manage the clearing and settlement of U.S. Treasury, Agency and Agency Mortgage-Backed repurchase agreement or repo transactions. With the endeavor, the....
The letter states the regulatory agency “will not recommend enforcement action” against a platform issuing a digital currency capable of being converted to fiat. The U.S. Securities and Exchange Commission, or SEC, has issued a rare no-action letter in response to a request from a blockchain-backed platform over the issuance of a digital asset.The SEC letter issued on Nov. 19 says that its Division of Corporation Finance would “not recommend enforcement action” against avatar social platform IMVU issuing its VCOIN digital asset under certain conditions. The commission will allow the firm....
The latest in securities law and crypto is not a revolution, but it is a step forward. As Cointelegraph reported two weeks ago, the Securities and Exchange Commission put out a rare no-action letter in defense of IMVU’s new blockchain-based VCOIN.VCOIN is only the third digital token to get such legal protection from the U.S. securities regulator, which makes it an exciting development. The SEC has been extremely active in punishing initial coin offerings that it views as unregistered securities offerings, but it has been more reluctant to define what does not count as a security — a....