In an article published by Bloomberg Law, Partner Benjamin Neaderland and State Attorneys General Practice Co-Chairs Paul Connell and Swain Wood explain why crypto firms and issuers should prepare for the expansion of state enforcement activity.
Excerpt: “Cryptocurrency regulation is already undergoing a significant change in enforcement priorities. The Trump administration appears to have reversed the SEC’s course on aggressively pursuing crypto market participants as part of the president’s promise to make the US the “world capital” of crypto. As firms and issuers contemplate adjustments in response to these and other anticipated changes in federal enforcement priorities, they should also prepare for the expansion of state enforcement activity. State and territorial law enforcement agencies retain significant power under blue sky laws to investigate and enforce their own securities statutes. These powers are greatest when it comes to preventing and punishing securities fraud, giving state-level jurisdictions a formidable tool to respond to perceived changes in federal enforcement priorities—or to pursue even broader policy agendas.”
