All posts by Lilya Tessler

LILYA TESSLER is a partner and the New York head of Sidley’s FinTech and Blockchain group. She focuses her practice on representing digital asset trading platforms, blockchain technology companies, U.S. and non-U.S. broker-dealers, financial services firms and cryptocurrency funds.

First SEC Enforcement Action Against Decentralized Digital Asset Exchange Echoes Recent Public Statements

In the first case of its kind, the Securities and Exchange Commission (SEC) announced an enforcement action related to EtherDelta, a decentralized digital asset trading platform that the SEC found operated as an unregistered national securities exchange. The enforcement action was brought against Zachary Coburn (Founder) of EtherDelta, rather than against any entity.
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One-Two-Three Punch: SEC and FINRA Announce Actions Against Unregistered Broker, Digital Asset Manager and FINRA Registered Person

On September 11, the Securities and Exchange Commission and Financial Industry Regulatory Authority separately announced three “first of their kind” enforcement actions related to digital assets. Over the past year, regulators have repeatedly stressed the need for compliance with the securities laws when transacting in digital assets that are securities. These actions emphasize the need for all market participants — not just issuers — to comply with the securities laws, and further underscore that compliance with the securities laws extends beyond avoiding fraudulent conduct.

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Nathan A. Howell

Verity A. Van Tassel Richards,