SEC Discusses Online Trading Platforms — With a Word of Caution

On March 7, 2018, the Securities and Exchange Commission’s Enforcement Division and its Trading & Markets Division issued a joint “Statement on Potentially Unlawful Online Platforms for Trading Digital Assets.”[1]  The release appeared to be the strongest signal yet of a broadening of the SEC’s enforcement and regulatory interest beyond its focus over the last year on the need for certain coin offerings to be registered or to qualify for an exemption as private placements.

The SEC staff’s release provided a laundry list of potential regulatory pitfalls for digital asset trading platforms and urged market participants to exercise caution … Read more