Insights & Regulatory Updates
Legal Framework for the Tokenization of Real-World Assets
The concept of tokenizing real-world assets (RWAs) has emerged as a transformative innovation at the intersection of technology, finance, and law. By leveraging blockchain technology to digitize ownership, tokenization is reshaping how we perceive, manage, and trade physical and intangible assets. From real estate and precious metals to intellectual property and collectibles, tokenization offers unparalleled opportunities for fractional ownership, liquidity, and efficiency. At its core, tokenization represents the digitization of assets into tokens recorded on a distributed ledger, allowing these assets to be bought, sold, and managed more effectively.
Why Startups Should Consider Fractional General Counsel Services
At Anderson P.C., we’re thrilled to announce that we now offer this innovative legal solution to startups. Our fractional GC services are designed to help founders focus on what they do best—building their business—while we handle the legal complexities. If you’re interested in learning more about how fractional General Counsel services can benefit your startup, contact us today.
The Evergreen Importance of Special Committees in Corporate Governance
Special committees have long been a cornerstone of corporate governance, particularly in situations involving conflicts of interest, significant transactions, or internal investigations. Their relevance persists, not just as a response to crises, but as a proactive measure to ensure transparency, fairness, and accountability in decision-making. As corporate transactions become more complex and scrutiny intensifies, the role of special committees remains indispensable.
Drafting Effective Board Resolutions: How to Appoint a Special Committee for Internal Investigations
In moments of crisis, such as allegations of misconduct or conflicts of interest, a company's board of directors must act decisively and transparently. One powerful tool at its disposal is the creation of a special committee to oversee internal investigations. This article explores the mechanics of drafting board resolutions to appoint such committees, leveraging insights and best practices from Anderson P.C., a boutique securities law firm specializing in governance and regulatory matters.
Court Grants Coinbase’s Motion for Interlocutory Appeal, Stays SEC Litigation
In a pivotal development for the cryptocurrency industry, Coinbase Inc. has successfully secured the right to pursue an interlocutory appeal in its ongoing legal battle with the Securities and Exchange Commission (SEC). This rare legal maneuver allows the U.S.-based cryptocurrency exchange to challenge a critical issue in the case before the litigation proceeds further.
Operation Chokepoint 2.0: Regulatory Overreach and the Battle for Crypto’s Future
In the wake of newly uncovered Federal Deposit Insurance Corporation (FDIC) documents obtained through Freedom of Information Act (FOIA) requests, the debate over “Operation Chokepoint 2.0” has escalated to a fever pitch.
The SEC’s $10 Billion Dilemma: The Challenges of Collecting Financial Penalties
The Securities and Exchange Commission (SEC) has long been heralded as a vigilant enforcer of securities laws, imposing billions of dollars in penalties on violators each year. However, a recent Wall Street Journal report reveals a sobering reality: over the past decade, the SEC has written off nearly $10 billion in fines it was unable to collect. This highlights the significant hurdles the agency faces in enforcing financial sanctions, particularly against individuals and entities adept at evading payment.
Should the SEC and CFTC Merge? A Comprehensive Analysis of a Long-Standing Debate
The longstanding debate over merging the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) has gained fresh urgency after Elon Musk and Vivek Ramaswamy have reignited the conversation. While advocates argue a merger could simplify crypto regulation and bolster systemic risk management, critics warn of operational disruptions and political resistance. This article revisits the history of the merger debate, its modern relevance, and its implications for the future of U.S. financial regulation.
Corporate Transparency Act Reporting Obligations Reinstated with New Deadlines
On December 23, 2024, the U.S. Court of Appeals for the Fifth Circuit granted the U.S. government’s request for an emergency stay, effectively reinstating enforcement of the Corporate Transparency Act (CTA). The stay lifts a nationwide preliminary injunction issued earlier this month by the U.S. District Court for the Eastern District of Texas, which had temporarily blocked CTA compliance requirements and paused the January 1, 2025, reporting deadline.
Anderson’s Guide to Effective Independent Internal Investigations
Organizations face heightened scrutiny as financial misconduct, fraud, and ethical breaches become increasingly complex. A well-executed internal investigation is more than just a response to misconduct—it’s an opportunity to demonstrate accountability, strengthen compliance frameworks, and protect your organization’s reputation.
At Anderson P.C., we approach internal investigations with precision, independence, and the strategic foresight our clients demand. Whether you are addressing allegations of misconduct or reinforcing your compliance program, our tailored methodologies ensure thorough, defensible, and results-oriented outcomes.
A Quick Guide on AI in Corporate Compliance in 2025
As we step into 2025, artificial intelligence (AI) continues to redefine corporate landscapes, becoming both an asset and a focal point for regulatory scrutiny. In September 2024, the Department of Justice (DOJ) announced a significant shift in its Evaluation of Corporate Compliance Programs (ECCP), highlighting the risks associated with AI technologies. For organizations, this move underscores an urgent need to integrate AI risk management into their compliance frameworks.
The Supreme Court in 2025: A Conservative Court in a Changing America
The Supreme Court’s conservative majority reflects more than an ideological leaning—it mirrors the divisions and debates that define American society. For every voice warning of regression, another celebrates restraint and constitutional adherence. For every fear of rights curtailed, there’s a hope for balance restored. The Court’s decisions, however consequential, do not dictate the nation’s future.
Beware of Pig Butchering Schemes and the Growing Threat of Crypto Scams
2024 has seen alarming developments in the world of financial fraud, with North Korean hackers stealing a record $1.3 billion in cryptocurrency this year alone. According to a recent Chainalysis report, North Korean-linked hackers accounted for more than half of the $2.2 billion stolen from cryptocurrency platforms in 2024. While these state-sponsored cyberattacks pose a significant threat to national security, individual scams like pig butchering schemes are wreaking havoc on unsuspecting victims worldwide.
SEC Adopts Amendments to Broker-Dealer Customer Protection Rule: Daily Computations and Enhanced Safeguards
The Securities and Exchange Commission (SEC) has adopted amendments to Rule 15c3-3, commonly known as the Customer Protection Rule, implementing significant updates to the frequency of reserve calculations for broker-dealers. The changes are aimed at bolstering protections for customer assets and enhancing financial stability within the securities markets.
Framework for White-Collar Crime in the United States
White-collar crimes are non-violent, financially motivated offenses typically committed by individuals in professional positions of trust. These crimes are generally classified as felonies, the most serious category of offenses, punishable by more than one year of imprisonment. Understanding the classification and legal implications of white-collar crimes is essential for grasping the severity of penalties involved.
FINRA Regulatory Notice 24-16: Simplified Customer Arbitrations and Document Production Lists
FINRA recently issued Regulatory Notice 24-16, announcing amendments to the applicability of the Document Production Lists for simplified customer arbitrations under Rule 12800. These changes, effective March 3, 2025, introduce greater flexibility for customers while clarifying the rules surrounding discovery in such proceedings. Simplified customer arbitrations are designed for disputes involving $50,000 or less, excluding interest and expenses.
FINRA’s December Meeting: Outside Activities Reform and Emerging Legal Challenges
The December 2024 FINRA Board of Governors meeting comes at a critical juncture, as the organization seeks to modernize its regulatory frameworks while grappling with heightened scrutiny of its authority and practices. Key among the discussions was FINRA’s proposal to consolidate its Outside Business Activities (OBA) and Private Securities Transactions (PST) rules into a unified Outside Activities Requirements Rule. However, this initiative takes place against the backdrop of two significant legal challenges: the Alpine Securities Corp. v. FINRA ruling, which questioned FINRA’s expedited expulsion procedures, and the federal lawsuit Preston v. SEC, which challenges the validity of FINRA Rule 3270 governing outside activities.
Crypto Advocates Celebrate as Caroline Crenshaw’s Renomination Vote is Canceled
In a notable development for the cryptocurrency industry, the Senate Banking Committee has canceled its vote on the renomination of SEC Commissioner Caroline Crenshaw. Originally scheduled for Wednesday, the vote was postponed due to a procedural conflict, according to a report by FOX Business journalist Eleanor Terrett. With Congress set to adjourn on December 20, this delay ensures that Crenshaw’s renomination will not be processed in time, leaving her future on the Commission uncertain.
ICAN Petitions Court to Compel SEC Review of “Accredited Investor” Rule
The Investor Choice Advocates Network (ICAN) has filed a writ of mandamus seeking to compel the SEC to review its definition of “accredited investor,” sparking renewed debate over a long-standing rule that governs participation in private investment markets. At the heart of the issue is whether the current standard, which limits eligibility based on income or net worth, strikes the right balance between protecting investors and fostering economic growth.
Crypto Groups Push Back Against Crenshaw Nomination: How Much Power Can One Commissioner Wield?
The nomination of U.S. Securities and Exchange Commission (SEC) member Caroline Crenshaw is sparking fierce resistance from the crypto industry. Dubbed “even more extreme” than SEC Chair Gary Gensler by critics, Crenshaw’s reappointment is being targeted through digital ad campaigns and lobbying efforts. The Cedar Innovation Foundation, a dark-money group backed by unnamed crypto interests, has taken center stage in this opposition, citing her consistent criticism of digital assets and reluctance to approve spot bitcoin exchange-traded funds (ETFs).