Thomas O. Gorman (LexBlog Australia)
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This Week In Securities Litigation (Week of July 17, 2023) The talk of the town – or at least the world of the Commission – was the ruling in SEC v. Ripple, 20 Civ 0832 (S.D.N.Y. File Dec. 22, 2020) last week. The action centers the what the firm calls XRP crypto assets. The court held that the assets were not a security but in some instances may be. For those who understand the Howey test this is not a surprise. Indeed the assets involved in many of the crypto cases are commodities subject to the CFTC’s jurisdiction. In some instances the assets may be securities, such as when the Howey test is met. More on this later in the week. Last week the Commission filed a number of new cases. Those included offering fraud actions and cases involving the misappropriation of investor assets as discussed below. Have a great and safe day. SEC Proposals: The Agency proposed rule amendments to broker-dealer customer protection Rule 15c3-3. The proposal would require broker-dealers with large total credits to increase the f
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SEC Prevails in First Circuit
The question of extraterritorial reach under Section 10(b) was resolved by the Supreme Court’s decision in Morrison v. National Australia Bank Ltd., 561 U.S. 247 (2010). There the Court concluded that the federal securities laws do not apply to extraterritorial … SEC Prevails in First Circuit Read More » Source
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Section 10(b), Morrison, Dodd-Frank and Extraterritorial Reach
Questions regarding the extraterritorial reach of Exchange Act section 10(b) have typically presented the courts with difficult factual and legal issues. The Supreme Court’s seminal decision in Morrison v. Nat’l Australia Bank Ltd., 561 U.S. 247 (2010) on the extraterritorial reach of that section added to the complexities. There the Court held that the federal...