One Rule For Corporations And Another For Cryptocurrency

One Rule For Corporations And Another For Cryptocurrency
фото показано с : cryptobriefing.com

2018-6-14 17:19

Imagine (if you can) a much-hyped cryptocurrency startup. After a successful ICO, the company decides to burn some of its tokens, thereby limiting circulation and raising the price.

Suppose further that some executives decide to trade on the information, by dumping their tokens as the price spiked.

Last, and most improbably, imagine the Securities and Exchange Commission watching over the affair with folded arms, as if to say: “Well, that’s a real shame, too bad we can’t do anything about it. And, in fact, we created the rules that allow it.”

This hypothetical might seem a tad unrealistic for the cryptocurrency world, where every ICO moves under a regulatory magnifying glass. But it’s perfectly acceptable in public corporations, where executives routinely take advantage of stock buybacks to cash in on their shares at a premium.

As CNBC reports, public companies have bought back $178 billion of their own shares in the first quarter of this year, and $23.6 billion came from insider selling.

Unlike other forms of insider trading, buybacks are not covered by the securities laws that prevent corporate employees from trading on private information – ‘safe harbor’ laws provisions specifically allow it in this case. These exceptions need to change, according to  SEC Commissioner Robert Jackson. Although the Dodd-Frank reforms have written provisions to keep investors in the loop about insider selling, those provisions have not been specified. 

 “It’s not just that the regulations haven’t been finalized. It’s that the problem itself keeps getting worse,” Jackson said in a speech to the left-wing Center for American Progress. “You see, the Trump tax bill has unleashed an unprecedented wave of buybacks, and I worry that lax SEC rules and corporate oversight are giving executives yet another chance to cash out at investor expense.”

SEC investigators determined that corporate insiders were twice as likely to sell shares in the eight days after a buyback announcement. The average daily sale volume during those days was about $500,000, five times greater than the normal volume. 

However, as Jackson emphasized, there are no rules against selling during a buyback. “This trading is not necessarily illegal. But it is troubling, because it is yet another piece of evidence that executives are spending more time on short-term stock trading than long-term value creation.”

Coincidentally, phrases like ‘troubling but not necessarily illegal’ are the exact opposite of what Jackson’s colleagues have said about cryptocurrencies. SEC officials have praised blockchain as the future of financial technology, and at the same time criticized Ethereum and Ripple for not fitting to twentieth-century securities standards.

The address places stark contrast on the differing standards to which public companies and ICOs are held. While the SEC’s position has slightly thawed, the threat of regulatory action continues to darken skies over the crypto markets. Such threats are rarely aired except for the worst of public companies. 

Jackson concluded by calling on his colleagues to establish a “comment period” for the SEC to review its regulations, and you can imagine how unlikely it is for regulators to invite “comments” on cryptos. Asked if he thought the SEC would actually tighten the rules on corporate buybacks, he answered, “Hope springs eternal, man.”

 

The author is invested in Ethereum and Ripple. 

 

The post One Rule For Corporations And Another For Cryptocurrency appeared first on Crypto Briefing.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Global Cryptocurrency (GCC) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Доступно / Всего 1.267b GCC / 2.4b GCC

cryptocurrency one price rule tokens some another

cryptocurrency one → Результатов: 44


Bitcoin Money Launderer Gets Prison Sentence After Dealing with Ill-Gotten Cryptocurrency Gains

One of the biggest concerns for crypto opponents is the way that money laundering is proving to be a use case for cryptocurrency. However, the silver lining of this problem is that the blockchain allows investigators to follow along with certain transactions with enough skill. While one Danish man thought he could get away with […]

2019-4-9 01:32


Coinbase Cryptocurrency Wage Fund Currently Open For Expenditure

Finance Coinbase has opened up its index fund for accredited US investors, giving them exposure to all cryptocurrencies listed on its exchange GDAX. Japan Confirms Entrance Into the Crypto Space Coinbase Index Fund Launched Coinbase, one of the largest cryptocurrency companies, announced on Tuesday, June 12, that Coinbase Index Fund is now open for investment.

2018-6-13 22:10


Фото:

‘Really Un-Tethered?’ Bitcoin Price Manipulation Returns With New Research

Days after Tether (USDT) gained a higher market cap than Monero and Dash, new research has reignited suspicions that the altcoin “manipulated” Bitcoin prices.   Cryptocurrency Highs Fuelled By Tether The product of two researchers at the University of Texas, the paper — titled Is Bitcoin Really Un-Tethered? — claims to have identified potential evidence of direct price manipulation since November 2017.

2018-6-13 20:00


South Korean banks suspected Coinrail transactions months before in Feb

In the latest update to the largest South Korean crypto stealing scandal valued at $37.28 million, media has unearthed evidence that banks had detected suspicious behavior at local exchanges. South Korea major trading center In terms of volume and number of exchanges, South Korean, is by far one of the largest trading centers of cryptocurrency […] The post South Korean banks suspected Coinrail transactions months before in Feb appeared first on ZyCrypto.

2018-6-14 16:25


Фото:

Neu-Ner: Bitcoin Not At Bottom (But Still a Great Long-Term Buy)

Bitcoin is going down, and one prominent cryptocurrency analyst believes it’s still got a ways to go. Nevertheless, the upside potential — in the grand scheme of things — is still massive. ‘We May See a Very Different Game in Mining’ Ran Neu-Ner, founder and CEO of Onchain Capital and host of CNBC Africa’s “Crypto Trader,” believes Bitcoin has not found its bottom.

2018-6-13 14:00


Фото:

Japan And The Illegal Crypto Trade: Cracking Down on Computer Mining.

News The police in Japan are cracking down on the illegal use of personal computers for cryptocurrency mining. Multiple prefectural police departments are currently investigating one particular case and pursuing criminal charges, which would make it the first criminal case in Japan where computers are illegally used for mining cryptocurrencies. Japan Confirms Entrance Into the

2018-6-13 11:08


Binance’s MoU with Digital Jersey to develop exchange

Digital Jersey, an economic agency and industry association, has signed a Memorandum of Understanding [MoU] with one of the largest cryptocurrency exchanges, Binance. Under this memorandum, Binance will develop a compliance base and cryptocurrency exchange in Jersey, while Digital Jersey will collaborate with Binance to deliver training to support the growing blockchain ecosystem in Jersey. Digital Jersey […]

2018-6-13 07:23


Six People Paid by Korean Exchange Upbit for Reporting Fraudulent Crypto Schemes

A major South Korean exchange, Upbit, has paid six people for reporting fraudulent crypto-related schemes. Japan Confirms Entrance Into the Crypto Space Upbit Paid Users for Reporting Fraud One of South Korea’s largest cryptocurrency exchanges, the Kakao Corp-backed Upbit, has paid six individuals for reporting fraudulent crypto-related schemes. The exchange implemented a bounty system in

2018-6-12 05:26


Top 5 Stablecoins to fall back on during the bear season

The three characteristics that are always held against the cryptocurrency market are, a) the speculation that surrounds it, b) the lack of regulation and c) its volatility. While the first two are subject to change and are in more than one aspect responsible for the third characteristic, people in the cryptocurrency world are taking the The post Top 5 Stablecoins to fall back on during the bear season appeared first on ItsBlockchain.

2018-6-11 07:45

Фото:

Markets Update: Crypto Prices Take a Weekend Beating

Cryptocurrency markets are suffering from deep losses today, on June 10, 2018, as most digital assets are seeing 24-hour declines between 9 and 25 percent. The number one position, held by Bitcoin Core (BTC), dropped more than a $1,000 just a few hours ago, from $7,600 to $6,600, but prices have rebounded back to $6,787 […] The post Markets Update: Crypto Prices Take a Weekend Beating appeared first on Bitcoin News.

2018-6-11 02:00

Фото:

Jason Attar Takes Cryptocurrency to the Big Screen in New Mockumentary

Award-winning comedian, actor, writer and director Jason Attar is once again heading for the big screen with his new project KevCoin: The Movie. A follow-up to his previous film One Night in Powder, Attar will don the guise of his infamous character Kevin Powder — a rock star “fixer” who’s constantly trying to reinvent himself through wild schemes — and take on the world of digital finance as he seeks out fame and riches.

2018-6-11 22:31