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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

Are all (or virtually all) prediction/event contracts now permissible? 

At least as the law stands now, there is no obvious line that the CFTC can draw by which the CFTC may prohibit event contracts other, than those that involve predictions related to illegal acts. Where the law does not provide clear support for regulatory action, it would seem to be the policy of this Administration that the regulator should not act.  

Rather, and largely appropriately, the…

It is doubtful that the CFPB will have an interest in further defending this Rule against legal challenge. This Administration is not going to advocate for collecting information on either the sexuality or the gender-identity of loan applicants.  

Chair Williams argues forcefully that the PCAOB must remain separate from the SEC. She seems to suggest its role is professional and, therefore, must remain independent. But any argument that the PCAOB requires independence from the SEC is strained, given recent history. Former SEC Chair Gensler fired leadership of the PCAOB and appointed his own people. (See, .) His predecessor, Chair Clayton did the same. (See .)

Commissioner Crenshaw has perfectly reasonable concerns as to investor protection. However, by clinging to the insistence that all crypto-assets are "securities," even in the face of the new SEC's explanation as to why meme coins and stablecoins are not within the scope of the securities laws (taking Howey into account), she deprives herself of an opportunity to shape what the law should be going forward. (See, e.g.,  .) Of course, if she would accept that many digital…