Libra: Facebook being hoisted with their own petard. Facebook has credibility issues with Congress starting with a 2011 settlement with the Federal Trade Commission for deceiving consumers and this year it has set aside $3 billion for violating the consent decree. Now, it wants Congress to believe that it will not share information from Calibra wallets with Facebook clients!
I have great respect for Warren Buffet and Charlie Munger, but I thought that both were unnecessarily extreme and emotional when they issued those statements about the crypto world. Now, after reading the Securities and Exchange Commission’s (SEC) complaint against Blockvest and Reginald Buddy Ringgold III, I have come to side with Buffet and Munger. The untold story of how a 30 something year old questionable, uneducated religious fanatic, who was once connected with a dubious credit company and sued the Oakland police department, established himself as a fintech guru and became the darling of the crypto world.
Yesterday the U.S. Securities and Exchange Commission (SEC) displayed its resolve in policing the Crypto Market and announced two major enforcement actions against firms involved in the digital assets sector, the SEC’s name for Cryptocurrencies. While the SEC has announced that Cryptocurrencies such as Bitcoin and Ethereum do not fall under its purview, some Crypto Assets do qualify as securities and it is monitoring the Cryptocurrency world for violations of U.S. Securities Regulations. (See our blog – “What Makes a Token A Security.”) However, these rulings also apply to any firm that seeks to issue exempt securities under the rules of Regulation A+ or D.
There has been a slew of recent articles with erroneous definitions for a token as a security and misidentification of the factors that the SEC uses to classify crypto assets as a security. The most recent misinformation, that I know of, came from an article “8 Important Things To Know About Security Tokens / Token Regulation” by Lukas Schor of The Argon Group in Medium, published on November 22nd, 2017.
If you are a Social Media or a Digital Marketing Manager working with Token Launches (otherwise known as ICOs), then you need to understand the attributes that qualify a Token Launch as a security and bring SEC oversight if you want to avoid prison and to continue working in the finance industry. Contrary to the belief of many crypto-geeks, the ability to legally launch a crypto security without registering the launch because of SEC exemptions does not mean that you and your bounty campaign are exempt from SEC Regulations.
Many financial firms and investment managers want to advertise with social media but are confused about the regulations governing advertising for investment products and services – especially rules for social media. On July 10, 2018, the Securities and Exchange Commission (SEC) reiterated their view that the Advertising Rule 206(4)-1 applies to social media with settlements against five firms for using testimonials to promote their firms or investment products.
Do you want to use social media to disseminate information about your firm or ideas, but you are unclear about the SEC’s rules for using social media to disseminate investment information? Is this lack of clarity preventing you from using social media to disseminate information?
If so, you are reducing your firm’s opportunities for developing credibility and authority with investors. There are four basic rules that can prevent violations of SEC rules.
Updated on August 15, 2018 to reflect Elon Musk's use of a blog page on the Tesla website to publish his explanation for sending out the August 7th tweets regarding his plan to take Tesla private.
Social media managers for corporations and investment organizations just received an important lesson from Elon Musk. On August 7, 2018, Musk sent out the following series of tweets to announce that he was planning to take Tesla private at $420 a share. This was significantly above the $341 a share trading level on the day before the announcement.