CUBE RegNews:
June 9^th

State regulators join in the crypto charges

The California Department of Financial Protection and Innovation (DFPI) has joined in on the recent activity against crypto by announcing that it has issued an action against Coinbase Global, Inc. and Coinbase, Inc. for violations of securities laws and corresponding penalties in connection with Coinbase’s staking rewards program. 

The action is the result of a multi-state task force of ten state securities regulators that also includes Alabama, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington, and Wisconsin. The DFPI press release notes the SEC’s concurrent efforts to enforce securities laws.

ASIC confirms relief for insurance companies

Life and general insurance companies under the Australian Securities & Investments Commission regime have been granted relief from certain regulatory burdens in two scenarios: 

• to provide legal certainty that confirmation of transactions is not required to be given to a life insurance policyholder who has passed away; and 
• to reduce the regulatory burden by providing an exemption from giving confirmation of a transaction following the occurrence of a recurring benefit claim payment. 

Both relief instruments form part of ASIC’s commitment to provide administrative relief in circumstances where strict compliance with the primary legislation produces an unintended or unforeseen result.