The hottest Securities Substack posts right now

And their main takeaways
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The DRS Mystery

The Dollar Endgame • 718 implied HN points • 29 Mar 24
💰 Finance Securities Market Manipulation Investors Stock Market
  1. There is a movement to directly register the entire float of a company through the Direct Registration System (DRS), which allows investors to hold their securities in book entry form directly with the issuer.
  2. The growth in DRS registrations started to stall, leading to investigations about why the consistent buy volume and DRS transfer images were not reflecting in reports. Theories emerged about how shares are manipulated and moved between book and plan shares.
  3. Complexities in the market and opaque practices by institutions make it challenging for retail investors to understand the full picture. The DRS numbers may not reflect the complete truth due to potential manipulation and changing market dynamics.

The Demise of Silicon Valley Bank

Net Interest • 496 implied HN points • 10 Mar 23
💰 Finance Banking Regulation Deposits Securities Bailout
  1. The demise of Silicon Valley Bank was caused by a collapse due to interest rate risk management and significant deposit outflows.
  2. Silicon Valley Bank's strategy of investing in securities was affected when rising interest rates led to significant unrealized losses, making the bank technically insolvent.
  3. The bank faced challenges in managing deposit outflows and was unable to satisfy demands due to a concentrated customer base and limited options like tapping into its securities portfolio.
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SEC Voyage Into Futures Ends Badly

Confronting the Future • 58 implied HN points • 08 Mar 23
💰 Finance Securities Cryptocurrency Regulation Exchanges Legislation
  1. The SEC faced difficulties in court hearings about Voyager's bankruptcy and the Grayscale Bitcoin ETF.
  2. Judges criticized the SEC's handling and lack of clarity in legal arguments, raising doubts about their approach.
  3. SEC's stance on unregistered crypto exchanges could lead to regulatory challenges, pushing crypto firms to explore non-US options.

This is Howey Do it — Rethinking the Security

Malt Liquidity • 10 implied HN points • 11 Dec 23
💰 Finance Regulation Cryptocurrency Investment Market Securities
  1. Speculation has been a part of human history, evolving into formal market mechanisms over time.
  2. The 'Howey' test is used to determine if a transaction constitutes an investment contract subject to securities regulation.
  3. Regulating cryptocurrencies and tokens under the Howey framework is complex, and alternative legislation may be needed to provide clarity and protection for businesses and traders.

Everybody Hates Gary

Malt Liquidity • 1 implied HN point • 12 Sep 23
💰 Finance Securities Regulation Market structure Compliance
  1. Defining a fair market is complex and involves intricate operations and risk mitigation strategies.
  2. The SEC's role encompasses protecting investors, maintaining market fairness, and facilitating capital formation.
  3. Increased SEC regulations may unintentionally benefit large players, making it crucial to close loopholes accessible only to wealthy investors.

The Fate of Crypto Rises and Falls on One Legal Question

Vitarbi • 2 HN points • 30 Mar 23
💰 Finance Cryptocurrency Securities Regulations Investment Legal
  1. The fate of cryptocurrency relies heavily on one legal question about whether certain digital assets should be considered securities under the Howey Test.
  2. The Howey Test is used to determine if a financial instrument is a security by assessing if there's an investment of money in a common enterprise expecting profits from others' efforts.
  3. Being labeled an unregistered security in the crypto industry can lead to severe consequences, including fines and damage to reputation.

Coin Metrics’ State of the Network: Issue 217

Coin Metrics' State of the Network • 0 implied HN points • 25 Jul 23
🔮 Crypto Regulation Blockchain Securities Market Analysis
  1. Determining which cryptocurrencies are considered securities remains a complex and critical issue in the evolving regulatory landscape.
  2. On-chain metrics provide valuable insights but are not the sole criteria for classifying assets as securities.
  3. Clear securities regulations could bring transparency and compliance measurements to the crypto industry, with on-chain data playing a potentially crucial role.

Coin Metrics’ State of the Network: Issue 216

Coin Metrics' State of the Network • 0 implied HN points • 18 Jul 23
🔮 Crypto Regulation Market Impact Exchanges Securities
  1. A milestone ruling favored Ripple Labs Inc. in its case with the SEC regarding the XRP token.
  2. The market reacted strongly to the ruling, with XRP price surging and U.S. exchanges re-listing XRP for trading.
  3. The ruling highlights the complexities of applying securities laws to digital assets and the ongoing battle between the crypto industry and regulators.