Aer Compliance

Aer CEO Owen Rapaport joined Tiffany J. Smith (WilmerHale) and Josh Peschko, CFA (Talos) at Star Synergy yesterday for an executive panel examining MiCA's influence on U.S. regulatory frameworks and anticipated developments over the next 12 - 24 months. Key insights from the session: 70% of participants are bullish on digital assets, while 90% anticipate formal U.S. crypto regulation implementation by the end of 2026. With the regulatory landscape evolving rapidly, industry participants must actively prepare for a more structured regulatory framework. Aer extends its appreciation to StarCompliance for facilitating this important dialogue.

We're at the NSCP conference in Dallas this week meeting with current and future clients. Interested in learning more about how we're using AI to revolutionize Compliance? Come see us in the exhibit area!

Our CEO Owen Rapaport joined industry leaders at StarCompliance's Synergy24 in Boston to discuss the evolving crypto regulatory landscape. As digital currencies transform finance, we're at the forefront of adapting compliance strategies for firms globally.

It has been a big week for crypto, with two enforcement actions signaling years of cases to come. First was the SEC’s case against Cumberland DRW, a major market maker, for operating as an unregistered broker. This continues SEC claims that many cryptocurrencies are securities although now against a new type of intermediary (vs. past cases against exchanges). Second, the USAO for Massachusetts brought the first ever claims against crypto firms for wash trading in crypto. This included the FBI launching its own token for market makers to wash trade. The message is that federal officials are increasingly paying attention to trading firms in the space, beyond exchanges and token issuers. These firms need to monitor their own activity because you can be sure other people are doing the same. If you’re a buy side firm concerned about market surveillance, reach out. And if you want to hear more about this, join our cofounder Owen who’s speaking about crypto and compliance at the National Society of Compliance Professionals conference in Dallas on October 30.

Navigating MiCA: Insights on Crypto Regulations and Personal Trading Yesterday, we hosted a webinar discussing the upcoming Markets in Crypto-Assets (MiCA) regulations. We thank everyone who attended for contributing to a thoughtful and dynamic conversation, and for those who missed it, we’ve summarized the key, actionable points below: 1. Unique Crypto Challenges: The crypto sector's emphasis on anonymity creates distinct hurdles in personal account disclosure compared to traditional finance. 2. Reputational Risks: Beyond market manipulation concerns, personal trading can significantly impact a firm's reputation, especially for employees with strong brand associations or equity stakes. 3. Regulatory Deadline: By December 30, 2024, market surveillance and personal trading controls must be implemented (MiCA Title VI). 4. Proactive Compliance: Firms are urged to develop internal oversight mechanisms to ensure regulatory adherence. Key Message: Given the nuance of MiCA Title VI’s grandfather clauses, waiting is no longer an option. Crypto firms must act promptly to establish compliant personal trading controls and implement robust oversight mechanisms. Thoughts on balancing regulatory compliance with the innovative spirit of crypto? Reach out to discuss how your CASP can navigate these new regulatory waters effectively.

Our team is in Barcelona this week at the European Blockchain Convention. Why? Because MiCA is coming, and if you want to offer crypto-related services in the EU you're going to need a license very soon. Particularly relevant to us at Aer is that MiCA's Title VI, about market abuse and surveillance, does not have a grandfathering clause. That means anyone operating a CASP in the EU will need to abide by it as of December 31, 2024. From our conversations on the ground here, it's clear this is on compliance officers' minds. If you're not in Barcelona, but want to learn more about how leaders in the field are planning to address these risks, come to our webinar next Tuesday at 2:30pm UK / 9:30am ET. Sign up here:

With our event already attracting over 50 signups from compliance and legal folks at Europe’s top banks, exchanges, and funds, we’ll be capping our attendee list soon! Make sure to sign up and reserve your spot before it’s too late (registration link in the comments)

ESMA's impending MiCA regulation is reshaping the landscape for Virtual Asset Service Providers and token issuers in the EU. Don't miss our upcoming webinar, MiCA: Conflicts of Interest, Market Surveillance, and the Journey to Registration, which offers attendees the opportunity to gain insights from legal and regulatory leaders. Information as follows: Date: October 1, 2024 Time: 9:30 AM ET / 2:30 PM UK / 3:30 PM EU Location: Zoom link to be sent to registrants Featuring expert speakers: - Richard Bruger: Partner at Wilmer Hale, ex-FCA Lawyer - Jonathan Dixon: Head of Surveillance at eflow Global, ex-Kraken - Josh Peschko: Global Head of Compliance Strategy at Talos, ex-AQR Capital Management Topics include: - Best practices for managing conflicts of interest - Implementing effective market surveillance - Navigating the registration process Stay ahead of the regulatory curve and register at the link below to secure your spot! https://lnkd.in/e8BG-zd3 #MiCA #Crypto #Regulation #Compliance

Yesterday, the SEC continued its marketing sweep into investment advisers by charging and settling 9 RIAs, for over $1M. These charges are especially interesting as they highlight the Commission's focus on newer aspects of the rule, such as testimonials and endorsements, which had not featured prominently in enforcement prior to the new rule. For instance, as the SEC noted, one of the firms "disseminated advertisements claiming to contain two testimonials, but neither actually came from current clients. It also advertised endorsements that did not disclose that the endorser was a paid, non-client of [the Firm] in videos, on social media, and on physical objects such as bags and flags." This is a heads up to all investment advisers: there will be no leniency even in newer parts of the rule during an information request or exam.

Yesterday, the SEC continued its marketing sweep into investment advisers by charging and settling 9 RIAs, for over $1M. These charges are especially interesting as they highlight the Commission's focus on newer aspects of the rule, such as testimonials and endorsements, which had not featured prominently in enforcement prior to the new rule. For instance, as the SEC noted, one of the firms "disseminated advertisements claiming to contain two testimonials, but neither actually came from current clients. It also advertised endorsements that did not disclose that the endorser was a paid, non-client of [the Firm] in videos, on social media, and on physical objects such as bags and flags." This is a heads up to all investment advisers: there will be no leniency even in newer parts of the rule during an information request or exam.