Chief Legal Architect and a co-founder of Caffrey.AI
Steven Lofchie is the Chief Legal Architect and a co-founder of Caffrey.AI, an AI platform built for law firms, banks, and the financial regulatory industry. He is also a partner at Norton Rose Fulbright, where he advises financial institutions on securities laws, the Commodity Exchange Act, and broker-dealer regulation. Ranked by Chambers USA every year since 2007, he is the author of “Lofchie’s Guide to Broker-Dealer Regulation,” long considered the leading treatise on the subject.
Recent Articles & Comments
Senator Toomey's letter cautioned Chair Gensler that this rulemaking could be viewed as "arbitrary and capricious," which seems to be a signal to the market that - in the event the rulemaking is adopted as proposed - there would be political support for judicial action against the SEC under the Administrative Procedure Act.
It seems completely reasonable for a custodian of crypto-assets to disclose (i) the risks inherent in the business of acting as custodian, (ii) the value of the assets that it holds, and (iii) the custodian's potential liability if it fails to maintain control of the assets.
On the other hand, there seems to be no informational value in requiring the custodian to add the value of the assets it holds in custody to both sides of its balance sheet. Blowing up the custodian's balance…
Running up $42,000 in commissions in a one-year period on a $94,000 account seems akin to theft. A three-month suspension seems insufficient.
Ms. Yellen's remarks are consistent with the view that the government intends to launch a CBDC. In this regard, her remarks suggest that the regulators are considering actions that will present roadblocks for private competitors.