need time to digest, takeaways to come..
one of the premises here for why BIA are securities is likened to the 'notes' that are securities a la this 1990 Supreme Court case "Reves v. Ernst & Young"- but even this case is largely litigated on specific facts w a long history
Some hard truths about being a VC that I learned the hard way:
Being a VC inherently means having the self-confidence and self-importance to step into a role with a lot of perceived power and authority.
If you can't get there due to intense imposter syndrome, it will only get worse (I've struggled the most with this, and still struggle).
Nov 30, 2020 • 4 tweets • 2 min read
Predators often get away with their behaviors for YEARS because it takes a lot of courage to call them out (ironically it can open yourself up to even more harassment/danger).
So when predatory behavior like this DO get called out, it's incredibly important to take it seriously.
Believe these women- it really takes a lot of guts to speak up, especially against more senior people in your professional community- and I'm sorry that the burden often falls on victims of predators to shed light on these behaviors.
Breaking federal securities laws has serious consequences. Something like insider trading carries both civil and criminal (i.e. jail sentence) penalties.
It doesn't matter how little you profit or how infrequently you do it. Once you're caught, you're done.
I know we all know that insider trading is wrong and illegal. But I think that sometimes we do things because we *think* we can get away with it.
For example, maybe you come across a piece of confidential information. You've seen it. So have the 50+ other people on your team.
Jun 18, 2019 • 18 tweets • 9 min read
I set an alarm for 7AM EST to read Facebook's Libra blockchain announcement and woke up to various posts, tweets & takes around the world (the announcement was released at 5AM).
Instead of adding more words to the discussion, here's a roundup of takes that made me think :)
1/ Here libra.org/en-US/ is the official website for all things Libra, and it's where the white paper and technical papers will live.
And there is also Calibra.com, which is the user-facing site about the digital Facebook wallet.
May 20, 2019 • 18 tweets • 3 min read
You've been asked to speak on a panel. It's exciting, but also incredibly nerve-racking. I've totally been there! Here are some tips + tricks that I have learned over the past year-- here's to hoping it will help you as well :)
How to be a better public speaker, Kwu edition 🎤
1/ Visualisation! A lot of athletes I know tell me that before a match, they actually will try and visualize themselves physically on the court/ in the race and having a good game. The same goes for public speaking!
Apr 9, 2019 • 15 tweets • 4 min read
“Did China really ban bitcoin mining???” 😱
I’ve received multiple versions of this question from people today, so I dug into this a bit more for a coherent answer. Posting in a tweet thread so everyone can see my response.
Before I start, I would encourage you all to read Dovey’s tweet thread on this topic.
🚨 THIS IS HUGE: the SEC just released an official statement on “Framework for ‘Investment Contract’ Analysis of Digital Assets” analyzing whether a digital asset is a security or not
READING NOW WILL POST ANALYSIS HERE STAY TUNED
WAIT THEY ALSO ISSUED A NO ACTION LETTER oooh boy my morning is about to get REAL NERDY
Jan 23, 2019 • 12 tweets • 3 min read
1/ The U.K.'s FAC (Financial Conduct Authority) released some pretty important (draft) guidelines today outlining how they are thinking around regulation of crypto assets.
Adding my two cents in addition to the fire threads from @msantoriESQ and @PatBerarducci 🧠
2/ Last month, I went and met with some folks from Hong Kong's SFC (Securities and Future Commission), who have released regulatory guidance for crypto exchanges & funds. What's interesting to me: non-U.S. regulators are less likely to focus on the 'everything= security' thing.
Jan 13, 2019 • 12 tweets • 3 min read
1/ Back in October, China’s “Internet regulator” put out draft regulatory guidelines for “"Blockchain information service and providers”.
As of this week, those guidelines are formalized and will take effect beginning February 15th.
+ "Blockchain information services" are those who provide information service to the general public via their apps/ web services that are based on blockchain technology.
Dec 30, 2018 • 9 tweets • 2 min read
When I was a legal intern at the SEC, we received a huge box one day with tons of CDs that contained recordings of internal phone conversations. Sent by an anonymous former employee of that company. 🍿
FYI in 2018 alone, the SEC awarded over $168 million to 13 whistleblowers.
For some context: the whistleblower program was created in 2012. Since creation, over $326 million has been awarded.
This year, the SEC received over 5,200 whistleblower tips. The $168 million award figure this year exceeds the total amount awarded in all prior years combined.
Dec 20, 2018 • 9 tweets • 2 min read
1/ The SEC just announced its Examination & Compliance priorities for the next year. On the list of six priorities, "digital assets" were listed as a category, and defined as "cryptocurrencies, coins, and tokens."
Here is what it means to be on the priority list ⬇️
2/ For context, the SEC's Office of Compliance Inspections and Examinations (OCIE) is one division of the SEC, and they carry out the SEC’s National Exam Program. The program generally is aimed to ensure market integrity, assess risk, and prevent fraud.
Dec 13, 2018 • 6 tweets • 2 min read
SEC Commissioner Pierce admits that "even the securities lawyers whom many of these entrepreneurs cannot afford are struggling to apply the [Howey] test....Enforcement actions ought not to be the means by which we tell the marketplace what we are thinking."
Sure, @HesterPeirce's speeches do not necessarily reflect the thinking of everyone at the SEC, but she has one of the five votes over enforcement decisions carried out by the Commission.
Dec 5, 2018 • 18 tweets • 4 min read
1/ In case you missed it this week, the CFTC lost a big case to DRW Investments (the owner of crypto trading firm Cumberland)
🔥🔥🔥 HOT take from this opinion: a federal judge compares the CFTC's enforcement lawyers to Flat Earthers.
I know everything may *seem* all doom and gloom on the U.S. regulatory front, but consider this in the past week:
+ SEC's ethics office approves one of its commissioners to go on the record on a crypto (!) podcast
+ CFTC's LabCFTC puts out a detailed primer on smart contracts
The SEC's Ethics Office is notoriously difficult to get any type of interview/ public statement approvals from, even in a personal capacity, so I don't see this as a random or small move- especially for one of its five commissioners (major decision makers at the agency).
Nov 19, 2018 • 25 tweets • 5 min read
1/ On a long late night train ride back to NYC and killing some time to read IMF Managing Director Christine Lagarde’s latest speech on the “fintech revolution” and the new IMF paper on Central Bank Digital currencies. Real-time thoughts as I read...
2/ Links here:
There’s so much action coming out of the SEC today my head is spinning.
I think this is the “plain English guidance” on token issuance & crypto trading that the SEC promised to release. Will sit down & read and as usual, brain-dump in this thread...🧠🧠
okay first of all, this is neither "plain English" nor is it much "guidance"
**facepalms as I continue reading**
Nov 9, 2018 • 8 tweets • 2 min read
1/ Talked to a NYAG attorney last night, who said this:
The SEC is engaged in the crypto exchange space. With Etherdelta, they got Coburn to cooperate & show that existing laws fit in this space. Translated: “We know how to put the crypto economy in our existing framework.”
2/ My thoughts:
We aren’t even seeing major crackdown from all of the state regulators yet. We are in the middle of “Operation Cryptosweep” (Yup that’s the actual name) that over 40+ states are engaged in.
1/ The official account of the Shenzhen International Court of Arbitration released an explanation on a recent share transfer dispute that involved bitcoin, bitcoin cash, and bitcoin diamond & determined that crypto is protected under China’s current property & contract law.
(Link: mp.weixin.qq.com/s/U_qDgQN9hceL…)
Oct 22, 2018 • 12 tweets • 3 min read
1/ China’s “Internet regulator” just put out draft guidelines for “blockchain information & related services” and are asking for public comments. This is China’s first regulatory attempt at defining & setting the scope for the “blockchain information/ technology” category.
2/ For background: China’s Office of the Central Cyberspace Affairs Commission (formed in 2014) is basically the regulator that has oversight in anything that is internet/ information-related— yes, that includes censorship/ information control/ etc.
Oct 11, 2018 • 15 tweets • 3 min read
1/ Went into rambo mode last night & wrote about the securities offering law and the accredited investor standard. The main points I made are summarized in this thread, but please make sure you read the full thing to get all of the explanation & charts!
messari.substack.com/p/securities-l…2/ Reminder: I’m not barred in any U.S. state and this is most definitely not legal advice (hire your own counsel guys), I hope these ramblings from a huge legal and policy nerd shed more light on a much discussed, but little-understood process.
