In February 2016, Congress passed the bipartisan SEC Small Business Advocate Act of 2016 (the “Act”). The Act amended the Securities Exchange Act of 1934 to establish an independent Office of the Advocate for Small Business Capital Formation (the “Office”) within the Securities and Exchange Commission (“SEC”). (H.R. 3784). Officially established in 2019, the Office aims to assist and advance the interests of small businesses and their investors in securing access to capital and complying with SEC regulations…
Read MoreAfter almost fifty years since founding the company in 1973, Patagonia founder and majority owner, Yvon Chouinard, and his family have donated all of the voting stock and transferred all of non-voting stock of the company in the effort to mitigate climate change and protect the environment. (Martine Paris, Bloomberg Law). In this unconventional business decision, Chouinard divested control over Patagonia to a trust and all future profits to an environmental nonprofit. (Tima Bansal, Forbes). While Chouinard considered selling the company or taking it public, he decided that transferring ownership of Patagonia, valued at about $3 billion, was the only way to both preserve nature and his company’s values….
Read MoreAutomated digital investment advisory programs, often referred to as “robo-advisers”, have grown in popularity over the last decade since their initial introduction in 2008. (SEC; Investopedia). As a digital financial adviser, a robo-adviser manages investments with minimal human intervention. (Milan Ganatra, Aashika Jain, Forbes). Robo-advisers provide automated investment portfolios based on the investor’s imputed preferences, risks, and goals by using advanced algorithms that analyze investor information. (Id.; Charles Schwab). While this technology is a considerable advancement and is accurate most of the time, it is not without its drawbacks and risks…
Read MoreThe Securities and Exchange Commission’s (“SEC”) enforcement agenda for the 2022 fiscal year addresses an expansive range of financial industries and products. (Thomas Zaccaro, et al.; Bloomberg Law). Amid the rapid growth of digital assets, the SEC’s enforcement agenda includes increased focus on the scrutiny and regulation of crypto-lending, the process where an investor will deposit cryptocurrencies into a crypto-lending account and earn interest on that deposit in the form of cryptocurrencies. (Id.; Brian Breheny, et al.; Skadden; Joe Light, The Washington Post). However, it was not until a recent SEC enforcement action against BlockFi Lending LLC (“BlockFi”) that the SEC applied the Investment Company Act of 1940 (the “Act”) to a crypto-lending company, which gave the SEC the opportunity to establish its approach for regulating crypto-lending. (Robert Kim, Bloomberg Law)…
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