The first quarter of 2023 was certainly one to remember, especially the final few weeks in the aftermath of Silicon Valley Bank and Signature Bank.

While the unwinding continues, so far in Q2 we've moved into the "what happened" and "what can we do differently going forward" phase, as exemplified by this week's important speech by FDIC Vice Chair Travis Hill. Please take a look at my quick summary, and I encourage you to read the full speech. 

We are also including this week a Bloomberg Law article by my colleagues Mercedes Kelley Tunstall and Nikita Cotton on crypto regulation in New York and a Clients & Friends Memo by partner Erica Hogan on new SEC filing requirements. And we have some insights into the FCA's 2023/24 priorities from London partner Alix Prentice.  

We're always here for comments and questions. Just drop me a note here. 

Daniel Meade 
Partner and Editor, Cabinet News and Views

By Daniel Meade

Partner | Financial Regulation

Federal Deposit Insurance Corporation Vice Chair Travis Hill gave a speech earlier this week, titled "Recent Bank Failures and the Path Ahead," at the Bipartisan Policy Center. 

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By Mercedes Kelley Tunstall

Partner | Financial Regulation

By Nikita B. Cotton

Associate | Financial Regulation

As crypto platforms come under increasing scrutiny, the state of New York in particular has been establishing clear regulatory expectations through enforcement actions involving two crypto exchanges (CoinEx and KuCoin). These enforcement actions are consistent with other recent actions taken against crypto platforms by the NY AG, in addition to other state authorities, the U.S. Securities and Exchange Commission, Commodity Futures Trading Commission, and Department of Justice. Of course, the actions also come on the heels of the well-publicized, high-profile bankruptcies of other crypto platforms.

This Bloomberg Law article examines these recent developments, providing context and highlighting the legal theories involved.

Read the article here.

By Erica Hogan

Partner | Corporate

The U.S. Securities and Exchange Commission has adopted new rules that will require the affiliates of public companies to electronically submit their Form 144 filings (as opposed to filing those forms manually), effective April 13, 2023. Specifically, whenever an affiliate of a company that files periodic reports with the SEC pursuant to Sections 13 or 15(d) of the Securities Exchange Act of 1934 effects the sale of securities in reliance upon Rule 144, a Form 144 must be electronically filed with the SEC, providing notice of the proposed sale if the amount to be sold under Rule 144 during any three-month period exceeds (a) 5,000 shares, or (b) has an aggregate sales price greater than $50,000. Pursuant to Rule 144(h)(3), the Form 144 must be transmitted for filing concurrently with either placing the order with a broker or the execution of the sale directly with a market maker. Executive officers, directors and large shareholders are typically affiliates of a Reporting Company because of their relationship of control with the issuer. 

This Clients & Friends Memo offers some practical tips on how companies can prepare for the new Rule 144 electronic filing requirements. Read it here. 

In the context of a year that has seen record levels of volatility, the FCA has set out in its Business Plan for 2023/24 how it plans to tackle regulating firms with a view to delivering on its objectives of: ensuring markets function well; securing appropriate protection for consumers; protecting and enhancing the integrity of the UK’s financial system; and promoting effective competition.

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