Gavin Meyers

For all those that think that OFAC, AML/CFT compliance, etc is only for banks: think again! On June 12, 2025, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed a $216 million civil penalty on a U.S. venture capital firm for violating Russia sanctions and failing to comply with an OFAC subpoena. This Penalty Notice reflects a surge in U.S. regulators’ enforcement of sanctions and export controls, aligning with the government’s strategy to advance U.S. policies through economic measures. Key Takeaways 1. Gatekeepers in the Spotlight
OFAC is targeting not only banks but also non-traditional financial entities like venture capital firms, accountants, attorneys, and trust service providers. As key links to the financial system, these gatekeepers must remain vigilant to prevent sanctioned parties from evading sanctions. 2. Maximum Penalty Signals Severity
OFAC’s use of the statutory maximum penalty suggests potentially egregious or criminal conduct. The “willful” violation finding may indicate a referral to the U.S. Department of Justice. 3. Large Fines Are Trending
This action continues OFAC’s pattern of significant penalties (e.g., Binance), emphasizing their focus on impactful enforcement. 4. Compliance is Critical
The case highlights the need for robust, risk-based sanctions compliance programs to avoid prohibited transactions and mitigate risks. 5. Non-Cooperation Has Consequences
OFAC views failure to comply with subpoenas as an aggravating factor and will enforce its administrative authority. What’s Next? This enforcement action underscores the importance of strengthening compliance frameworks to navigate OFAC’s aggressive oversight. How is your organization addressing these risks? Let’s discuss! Expert comment by the talented David Lim Nicole Erb Brent Wible and Cristina Brayton-Lewis Narciso Campos Cuevas Eduardo Apaez Davila Eugenio Bernal https://lnkd.in/eU83V3c2

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Spot Crypto Gets the Green Light On September 2, 2025, the CFTC and SEC issued a joint statement clarifying that CFTC-registered DCMs and FBOTs, and SEC-registered NSEs are not prohibited from facilitating certain leveraged, margined, or financed spot crypto trading—an important shift toward regulatory clarity and market innovation. For exchanges preparing crypto-spot product filings, the statement outlines five critical considerations: • Margin, Clearing, and Settlement • Monitoring of Underlying Markets • Public Dissemination of Trade Data • Promoting Fair and Orderly Markets • Innovation with Investor and Customer Protections #Crypto #DCM #FBOT #NSE #CFTC #SEC

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On July 1, 2025, the SEC's Division of Corporation Finance issued new guidance clarifying disclosure requirements for crypto asset exchange-traded product issuers in connection with securities offerings and registrations. This statement is part of the SEC’s broader initiative to clarify the application of federal securities laws to crypto assets. https://gag.gl/R9vsle

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The Securities and Exchange Commission’s Division of Corporation Finance released a statement articulating its position that certain cryptocurrency staking activities fall outside the federal securities laws. This development coincides with the House of Representatives introducing the Digital Asset Market Clarity Act, a comprehensive market structure bill for digital assets, signaling continued momentum toward regulatory clarity in the digital assets sector. For more - https://bit.ly/45LVeyw #SEC #DigitalAssets #Stake

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🚀 The SEC and CFTC just signed a new MOU on regulatory harmonization, and looks like much more than a good press release. tl;dr the agencies are committing to joint rulemakings, coordinated exams, shared data and a "minimum effective dose" regulatory philosophy. Why does this matter? The US is the only major capital market that splits financial regulation between two agencies. After decades of duplicative registrations & conflicting rules we now have a Joint Harmonization Initiative with dedicated staff from both agencies to actually fix it. The guiding principles are where the real signal is. The MOU explicitly commits both agencies to "reject a turf war mentality" and states that they "jointly recognize the foundational importance of fair notice to market participants and not regulating through enforcement." That second part is doing a LOT of work. On crypto specifically, the agencies commit to "closely coordinating and cooperating to remove obstacles" to lawful introduction of novel derivative and crypto asset products. That's the industry unlock: not "we won't block things" but "we'll work to clear the path." Combined w/ the fit-for-purpose framework language, this is the clearest joint signal yet on crypto regulatory posture. The MOU also opens the door to "alternative compliance frameworks" and "appropriately tailored and regulated 'super-apps'" — for anyone watching the M&A trends toward full-stack tradfi + crypto platforms, this is the regulatory infrastructure they need. The operational commitments matter too. For dually registered firms (broker-dealers that are also FCMs, RIAs that are also CPOs) the agencies commit to joint exam planning, shared findings and harmonized risk assessments. On enforcement, they'll consult at the outset of any investigation w/ overlapping jurisdiction and coordinate before issuing Wells notices. Less duplication, fewer conflicting obligations. I've mentioned before that strong coordination between the CFTC and SEC is a massive unlock, not just for crypto but for every firm that touches both securities and derivatives. This MOU puts the philosophy in writing w/ actual coordination mechanisms behind it. Chairs Selig and Atkins deserve a ton of credit for enabling this. Now comes execution. Link to full MOU & press release: https://lnkd.in/eQpWWA4N

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The New York State Department of Financial Services has settled a significant enforcement action against Paxos arising from its relationship with Binance. The settlement is based on charges that Paxos failed to conduct sufficient due diligence of Binance and had a deficient AML program. While the regulatory environment for crypto has turned for the better, this is an indication that NYDFS (and likely other agencies) will still expect crypto companies to adhere to longstanding regulatory requirements such as AML programs. https://lnkd.in/d6G-scN8

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SEC Launches Project Crypto: A Game-Changer for U.S. Crypto Regulation In a groundbreaking move on July 31, 2025, SEC Chair Paul Atkins introduced Project Crypto, a comprehensive initiative aimed at modernizing existing securities laws and expediting the integration of crypto assets into American financial markets. This strategic endeavor signifies a significant departure from the traditional approach of stringent enforcement and unclear regulations that have prevailed for years. Project Crypto signifies a pivotal shift towards empowerment rather than restriction. By clearly defining the classification of crypto assets as securities, establishing specialized safe harbors for activities like ICOs and airdrops, and endorsing all-in-one "super-apps" that streamline trading, staking, and lending processes, the SEC is championing innovation over punitive measures. The SEC's agenda includes a thorough overhaul of outdated regulations deemed irrelevant in today's digital landscape. Collaborating with the Crypto Task Force under the leadership of Commissioner Peirce, the SEC aims to propose precise guidelines concerning asset distribution, custody protocols, and trading practices, aligning with the demands of the modern era. For more information, visit: [SEC Speech on Digital Finance Revolution](https://lnkd.in/gdqXwvEj)

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On September 4, the Commodity Futures Trading Commission (CFTC) issued orders filing and settling compliance-related violations against ten registrants, including swap dealers, futures commission merchants, a commodity pool operator, and an introducing broker. The six orders follow the CFTC’s self-proclaimed “enforcement sprint,” in which eligible firms were encouraged to submit remediation plans and settlement offers to resolve compliance violations that did not involve fraud, customer harm, or market abuse.

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More regulatory harmonization is on the way between the SEC and CFTC. The agencies have released a joint statement announcing several joint initiatives and potential regulatory changes, with a particular focus on fostering innovation in digital assets, crypto products, and emerging trading platforms. Plans include a joint roundtable on regulatory harmonization, an expansion of trading hours, event and perpetual contracts, and portfolio managing, among others. For a summary of the recent harmonization efforts, click below to download Jones Day's Alert. #DeFi #crypto #digitalassets

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We are seeing a landscape where banks still have the discretion to shut down accounts of crypto intermediaries and other operators, while major players like Mastercard are able to acquire and control key parts of the infrastructure. The result is a system where access is restricted on one side, and consolidation grows on the other while evolving regulations are often making the problem even more complex rather than solving it. 😴

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The SEC's most recent action makes clear that the Commission has not paused fraud-related enforcement concerning crypto-based businesses, at least where the SEC alleges a steal-the-money fraud. According to the SEC's complaint, Richard T. Kim raised money to fund an early-stage company, Zero Edge Corporation, that purported to be developing a blockchain-based online casino and misappropriated investor funds almost immediately after receiving them. Interestingly, the SEC's complaint does not allege violations of the registration provisions, which are typically included in alleged fraud cases of this style (and which the new administration has studiously avoided in more recent crypto actions). In this case, the SEC may have concluded from its investigation that one or more Section 5 exemptions were likely to apply to the offering but, historically, facts supporting exemptions were not generally credited to the defense at the complaint stage of a case. One takeaway may be that, in addition to pulling back on some crypto-related charges, the SEC is taking a more conservative approach to alleging violations of the registration provisions, whether or not the case concerns crypto. This would be consistent with calls for the Commission to approve greater access to private investments, including through a re-haul of accredited investor status, and with the recent guidance stating that issuers may rely on minimum investment amounts as a reasonable step to verify accredited status. #crypto #accredited #AkinCryptoBlock https://lnkd.in/gr6XnJpx

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Your investor client is closing on a cash deal through an LLC next week. There is a federal report now required. As of March 1st, 2026. Neither you nor they probably know about it yet. Here's what changed: FinCEN — the U.S. Treasury's Financial Crimes Enforcement Network — has a new rule in effect called the Residential Real Estate Reporting Rule. In plain English: If a residential property closes in cash, through an LLC, corporation, or trust — someone in that transaction must now file a federal report disclosing the actual human beings behind that entity. Not the LLC name. Not the registered agent. The real people. Government ID numbers. Addresses. Who it hits in South Florida: → All-cash residential purchases (1-4 family, condos, co-ops, certain vacant land) → Where the buyer is an LLC, corp, or trust → Not financed through a bank with AML requirements That is most of your investor cash deals. That is most of your foreign national buyers closing through entities. That is the portfolio client who just went under contract last Tuesday. Who files the report: FinCEN uses a "reporting cascade" — a hierarchy that works down the closing chain. In almost every transaction, it lands on the title company or settlement agent. That is us. We are set up. We are filing. Your investor clients are probably not aware this exists. What happens if no report gets filed: Civil penalties up to $1,394 per day. Criminal liability for willful violations. No grace period. No "we didn't know." The rule is not coming. It is not pending. It went into effect ten days ago. If you have cash-deal clients closing through LLCs or trusts in Broward, Dade, or Palm Beach: Tell them before their next closing. Not after. 📌 Save this. Send it to every investor in your database today. 📞 (954) 789-4503 | titlenowfl.com — Tahir Noohani, Esq. Title Now LLC #FinCEN #FloridaRealEstate #InvestorAlert #TitleNow #CashDeals #SouthFlorida #RealEstateLaw #KnowBeforeYouClose

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🎆 🎆 The SEC just did something monumental for the crypto industry. For the first time, it has released a coherent interpretive framework for how U.S. securities laws apply to crypto assets and transactions. It signals a shift away from regulation by enforcement, and provides guidance on how staking, mining, wrapping and airdrops fall outside the ambit of securities laws. This is what we've been waiting for! Now compare this to Canada. We have CSA Staff Notice 46-308 (from the middle ages - 2018), which unfortunately remains the primary guidance for how securities laws applies to crypto. This guidance remains rooted in ICO-era thinking, is skeptical of utility tokens, and is heavily reliant on a very broad investment contract analysis. Canada, we need an update to CSA Staff Notice 46-308, one that addresses: • token lifecycle evolution • functional / decentralized networks • staking, mining, or protocol mechanics • stablecoins as a distinct category We've taken steps on stablecoins (sort of), but if we don't update our guidance on tokens, we risk even more capital flight to the US and abroad. We need to move quickly. #token #SEC #SECcrypto #cryptocurrency #bitcoin #law #guidance #regulation #securities #securitieslaw #blockchain #tokens #CTFC #crypto #rules #rulemaking #decentralized #USA Canadian Web3 Council Canadian Bitcoin Consortium https://lnkd.in/g8n4mPYr

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The #NCUA issued its proposed rule implementing the GENIUS Act with a path for issuing stablecoins. One thing is clear - the details will come in separately issued guidance for those in the industry interested in participating in this activity. https://lnkd.in/e7eQ2w3x

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The SEC's pivot to embrace digital asset innovation, exemplified by its May 15 withdrawal of restrictive 2019 guidance and issuance of new FAQs easing broker-dealer custody requirements for crypto assets, signals a regulatory reset that empowers investor choice while fostering a more adaptive framework for financial advisors. Investor Choice Advocates Network's latest SEC Roundup episode on ThinkAdvisor dives deep into this transformation with former SEC Commissioner Troy A. Paredes and Cooley LLP's Rodrigo Seira Silva-Herzog, exploring what this shift means for the future of digital asset regulation. Key takeaways: -The SEC's shift from enforcement-only to genuine stakeholder engagement through structured roundtables -A principles-based approach that starts with regulatory objectives rather than getting trapped in outdated technical requirements -Recognition that "regulatory humility" and rebuilt trust are essential for effective oversight As Troy noted: "The commission is looking to embrace the promise and opportunity that the underlying technology affords" - while still maintaining core investor protections. The recent withdrawal of the SEC's digital asset custody guidance exemplifies this new approach - moving from rigid frameworks toward technology-aligned solutions that serve the same protective purposes. For investment advisors navigating this space, this signals a more collaborative regulatory environment ahead. https://lnkd.in/gEaCT8ny

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Pryor Cashman Partner Jeffrey Alberts and Associate Aaron Wiltse have published a client alert analyzing new guidance from the CFTC that reshapes how market participants should approach self-reporting potential violations. The first CFTC advisory introduced a first-ever “discount matrix” identifying measurable penalty reductions for timely self-reporting and cooperation, and permitted registrants to self-disclose potential violations to the CFTC’s operating divisions, rather than to the enforcement division, for the first time. A subsequent April 2025 advisory then clarified that the operating divisions will only refer self-reported potential violations to the enforcement division if they are “material”—such as those involving fraud or significant market harm. Together, these advisories mark a shift toward transparency and risk-based enforcement—encouraging registrants to disclose issues early and directly to CFTC operating divisions when appropriate. Read more here: https://lnkd.in/eR6qmTbN #CFTC #Compliance #Enforcement #SelfReporting #FinancialRegulation #PryorCashman

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