The language only addresses a federal court's jurisdiction, not the SEC's jurisdiction.
In SEC v. Traffic Monsoon, the District of Utah ruled that the Dodd-Frank language overruled Morrison, and the "Conduct and effects" test applied to the SEC's regulatory powers.
The Court essentially said that because there is a presumption against extraterritoriality, and because the "Conduct and effects" test applies American securities law to a broad swath of foreign transactions, we need a better test.
Most of all, we need a test that reflects the presumption that securities laws do not have extraterritorial application.
So the Supreme Court overruled the "Conducts and effects" test announced a new test, the "Transactional Test." The Transactional Test is a follows: American securities law applied "Only in connection with the purchase or sale of a security listed on an American stock exchange, and the purchase or sale of any other security in the United States."
This sounds a lot like the old test and indeed that is exactly what the SEC continues to argue-namely, this language overrules Morrison and means that the "Conduct and effects" test applies in determining whether the SEC can bring a regulatory action predicated on a foreign investment.
It says the district court has jurisdiction over the regulatory action, not that the SEC may validly state a claim.
A federal court always had jurisdiction, if only to tell the SEC it was reaching too far.
Undeterred, the SEC has very consistently argued, using legislative history and canons of statutory construction, that Congress meant to expand its regulatory authority and the reference to district courts was a drafting error.
The court in SEC v. Traffic Monsoon, LLC ruled that Dodd-Frank did in fact overrule Morrison and that the "Conducts and effects" test governed the SEC's regulatory reach.
ICOs and the SEC's Extraterritorial Jurisdiction: A Brief Primer
gepubliceerd op Dec 18, 2018
by Cryptoslate | gepubliceerd op Coinage
Coinage
Recent nieuws
Alles zien
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.