The Securities and Exchange Commission Strategic Hub for Innovation and Financial Technology Staff (FinHub Staff) issues this statement[1] on an interpretation published by the Office of the Comptroller of the Currency (OCC Interpretation)[2] addressing the authority of national banks and federal savings associations to hold "stablecoin reserves." The OCC has limited its Interpretation to holding reserves of a "stablecoin" associated with hosted wallets that is backed by a single fiat currency and redeemable by the holder of the "stablecoin" on a 1:1 basis for the underlying fiat currency upon submission of a redemption request to the issuer.

Whether a particular digital asset, including a so-called "stablecoin," is a security under the federal securities laws is inherently a facts and circumstances determination. This determination requires a careful analysis of the nature of the instrument, including the rights it purports to convey, and how it is...

The Securities and Exchange Commission today charged Yinghang “James” Yang, a senior index manager at a globally recognized index provider, and his friend Yuanbiao Chen, a manager at a sushi restaurant, with perpetrating an insider-trading scheme that generated more than $900,000 in illegal profits.

The SEC’s complaint alleges that between June and October of 2019, Yang and Chen repeatedly purchased call or put options of publicly traded companies hours before public announcements that those companies would be added to or removed from a popular stock market index that Yang helped his employer manage. When the options increased in value after the announcements, Yang and Chen allegedly liquidated their options positions for a substantial profit. As alleged in the complaint, the defendants conducted all of the illegal trading in Chen’s brokerage account, which allowed Yang to conceal his trading from his employer. The complaint alleges, for example,...

The Office of Compliance Inspections and Examinations (“OCIE”) has observed in recent examinations an increase in the number of cyber-attacks against SEC-registered investment advisers and brokers and dealers using credential stuffing, a method of cyber-attack to client accounts that uses compromised client login credentials, resulting in the possible loss of customer assets and unauthorized disclosure of sensitive personal information. The failure to proactively mitigate the risks of credential stuffing proactively significantly increases various risks for firms, including but not limited to financial, regulatory, legal, and reputational risks, as well as, importantly, risks to investors. OCIE encourages firms to review their customer account protection safeguards and identity theft prevention programs and consider whether updates to such programs or policies are warranted to address emergent risks. 

View the Risk Alert: Cybersecurity: Safeguarding Client...

The Securities and Exchange Commission today announced settled charges against a Colorado man for defrauding investors, including cadets at the U.S. Air Force Academy.

The SEC’s complaint alleges that over a two-year period, Milton J. Dosal, Jr. raised nearly $100,000 from approximately 41 investors under the guise that he would day-trade stocks on their behalf. According to the complaint, Dosal, a car enthusiast, met a number of investors through car club events, including an Air Force Academy cadet who Dosal then used to gain access to other cadets Dosal convinced to invest. The complaint alleges that Dosal falsely held himself out as a securities professional and misled investors about his trading activity and their investment returns. The complaint further alleges that Dosal’s empty promises included telling investors that they could, with little risk, expect weekly returns of up to ten percent. Dosal also allegedly used fake stockbroker agreements and false account...

The Securities and Exchange Commission today announced an award of $2.4 million to a whistleblower whose timely submission of information prompted the agency to initiate an investigation and bring an enforcement action that stopped ongoing misconduct, and whose assistance throughout the investigation contributed to all of the charges brought by the SEC.

"The whistleblower awarded today quickly came forward with critical information and helped investigative staff target key information and identify important witnesses," said Jane Norberg, Chief of the SEC's Office of the Whistleblower.  "Information from whistleblowers has again proven to be crucial in helping the Commission detect violations and better protect investors and the marketplace."

The SEC has awarded approximately $523 million to 97 individuals since issuing its first award in 2012. This marks the sixth award the Commission has made in the past three weeks alone. All payments are...

It can be daunting to start out as a new investor. But mastering a few basics can go a long way to helping you succeed, Securities and Exchange Commission Chairman Jay Clayton tells Grow.

Financial literacy is an important component of the agency's role — and Clayton's, too. The SEC is behind education site Investor.gov, and Clayton has created a series of educational videos based on his conversations with individual investors.

The Office of Compliance Inspections and Examinations (“OCIE”) has observed in recent examinations an increase in the number of cyber-attacks against SEC-registered investment advisers and brokers and dealers using credential stuffing, a method of cyber-attack to client accounts that uses compromised client login credentials, resulting in the possible loss of customer assets and unauthorized disclosure of sensitive personal information. The failure to proactively mitigate the risks of credential stuffing proactively significantly increases various risks for firms, including but not limited to financial, regulatory, legal, and reputational risks, as well as, importantly, risks to investors. OCIE encourages firms to review their customer account protection safeguards and identity theft prevention programs and consider whether updates to such programs or policies are warranted to address emergent risks. 

View the Risk Alert: Cybersecurity: Safeguarding Client...

We join the nation in mourning the passing of Justice Ruth Bader Ginsburg. Justice Ginsburg's powerful intellect and determination shaped decisions that had meaningful impacts for all Americans, including our nation's investors. She inspired many, and her trailblazing career will serve as a model of public service and dedication to our country for generations to come.

The Securities and Exchange Commission today published procedures setting forth a staff-led process to nominate candidates for appointment to the Investor Advisory Committee. Candidates for vacancies on the Committee will be identified by a nominating committee composed of staff from across the SEC’s divisions and offices. The nominating committee will initially be chaired by Robert Marchman, Senior Policy Advisor for Diversity and Inclusion.

The nominating committee will identify candidates based on functional membership categories published on the SEC’s website, and members of the public are encouraged to express their interest in serving on the Committee. The staff-led nomination process is designed to promote a diversity of background, expertise, and perspective to assist the Committee in addressing the wide range of issues affecting investors.

“These procedures bring much needed improvements to the process of appointing members to the Investor Advisory...

The Securities and Exchange Commission today announced an award of nearly $250,000 to joint whistleblowers whose tip caused the opening of an investigation that resulted in a successful enforcement action. The whistleblowers raised concerns internally before reporting the concerns to the Commission.

“The whistleblowers’ information alerted Commission staff to the potential securities violations and prompted the staff to open an investigation,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “While the case was largely built through the investigative efforts of the Commission staff, this award highlights the importance of receiving that initial tip that can break open the case.”

The SEC has awarded approximately $521 million to 96 individuals since issuing its first award in 2012. Including today’s award, the SEC has made whistleblower awards to 29 individuals during this fiscal year – the highest in any fiscal year to date. All payments are made...