# Securities regulation `kaal:entity:securities-regulation` **Status.** derived This node is assembled mechanically from the 11 claims that carry the concept tag `securities-regulation`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself. ## Every claim under this term 11 claims across 8 works, 2010 to 2022. **2010** - [1664809-001](https://wulfkaal.github.io/claims/1664809-001) [empirical/asserted] -- In securities regulation the SEC has continuously expanded its extraterritorial reach, and it has done so with strong support from the judiciary, most notably the Second Circuit Court of Appeals. > the SEC has continuously expanded its extraterritorial reach Richard W. Painter, Wulf A. Kaal, Extraterritorial Application of US Securities Law – Will the US Become the Default Jurisdiction for (2010). SSRN: https://ssrn.com/abstract=1664809 **2016** - [2714974-001](https://wulfkaal.github.io/claims/2714974-001) [mechanism/asserted] -- The originators of the earliest U.S. hedge funds deliberately structured the funds to maximize trading freedom by minimizing exposure to federal regulation, so the industry's private, unregistered form was a design choice rather than an accident of history. > The originators of the early funds designed the funds to maximize their freedom to employ complex trading strategies by minimizing their exposure to regulation under various federal statutes. Kaal and Oesterle, The History of Hedge Fund Regulation in the United States (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2714974 - [2715083-001](https://wulfkaal.github.io/claims/2715083-001) [definitional/argued] -- Confluence between mutual and hedge funds runs in two directions at once: mutual funds are converging on hedge funds along the dimension of investment strategy, while hedge funds are converging on mutual funds along the dimension of regulation. > Mutual funds are becoming more like hedge funds as a matter of investment strategy while hedge funds are becoming more like mutual funds as a matter of the regulatory framework. Kaal, Confluence of Mutual and Private Funds (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2715083 - [2715083-036](https://wulfkaal.github.io/claims/2715083-036) [mechanism/argued] -- Confluence of mutual and hedge funds contributes to the gradual erosion of the public/private distinction that structures federal securities regulation. > Mutual and hedge fund confluence contributes to the gradual erosion of the public/private distinction in federal securities regulation. Kaal, Confluence of Mutual and Private Funds (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2715083 - [2715083-037](https://wulfkaal.github.io/claims/2715083-037) [empirical/argued] -- The evidence assembled here suggests the traditional public/private distinction between mutual and hedge funds is eroding faster than previously anticipated. > The evidence listed herein suggests that the traditional public/private distinctions between mutual and hedge funds is eroding at a higher than previously anticipated rate. Kaal, Confluence of Mutual and Private Funds (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2715083 - [2811729-035](https://wulfkaal.github.io/claims/2811729-035) [mechanism/argued] -- The proliferation of unconstrained mutual funds has contributed to the confluence of mutual and private funds and weakened the traditional public/private distinction in federal securities regulation. > The proliferation of UMFs has contributed to the confluence of mutual and private funds, and weakened the traditional public/private distinction in federal securities regulation. Wulf A. Kaal, Unconstrained Mutual Funds and Retail Investor Protection (2016). SSRN: https://ssrn.com/abstract=2811729 **2017** - [2939127-032](https://wulfkaal.github.io/claims/2939127-032) [condition/argued] -- Open legal questions about the DAO, including which regime governs token issuance, minority token holder protection, taxation, the binding force of DAO smart contracts, ownership of intellectual property, and conflict resolution, must be answered before future DAO structures can operate seamlessly. > Open legal issues pertaining to the DAO need to be addressed before future DAO setups can operate seamlessly. Mark Fenwick, Wulf A. Kaal, Erik P. M. Vermeulen, Legal Education in the Blockchain Revolution (2017). SSRN: https://ssrn.com/abstract=2939127 **2018** - [3249860-024](https://wulfkaal.github.io/claims/3249860-024) [empirical/evidenced] *(failure mode)* -- The utility token model dominates the top 100 tokens, but the utility category as coded includes tokens that behave like a security, and no Howey test was performed in this research. > attributes: tokens offer owners clearly defined utility within a network or application (utility tokens); tokens that behave like a security, although no Howey test was performed in this research; Wulf A. Kaal, Crypto Economics - The Top 100 Token Models Compared (2018). SSRN: https://ssrn.com/abstract=3249860 **2020** - [3606663-005](https://wulfkaal.github.io/claims/3606663-005) [failure/argued] *(failure mode)* -- The assumption by ICO issuers that token sales let them circumvent securities registration and disclosure requirements proved to be a fallacy for many U.S. issuers, who faced increased SEC enforcement actions in late 2019. > Of course, for many U.S. issuers of tokens in ICOs this presumption became in retrospective a fallacy that should haunt them in the aftermath of increased SEC enforcement actions of ICOs in late 2019. Kaal, Digital Asset Market Evolution (2020). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3606663 - [3606663-012](https://wulfkaal.github.io/claims/3606663-012) [failure/argued] *(failure mode)* -- The absence of mandatory disclosure obligations for ICOs leads promoters to make irregular disclosures or none at all as time passes, producing a significant lack of transparency in the ICO market. > Moreover, the lack of mandatory disclosures for ICOs leads many promoters to make irregular or no disclosures about the platform as time passes, leading to a significant lack of transparency in the ICO market. Kaal, Digital Asset Market Evolution (2020). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3606663 **2022** - [4021599-012](https://wulfkaal.github.io/claims/4021599-012) [definitional/evidenced] -- The literature on securities tokens converges on two commonalities: that a securities token functions as or is synonymous with traditional security assets, and that securities tokens are subject to traditional securities regulation. > that a securities token functions as or is synonymous with traditional security assets,15 and 2. that securities tokens are subject to traditional securities regulation.16 Wulf A. Kaal, Securities Versus Utility Tokens (2022). SSRN: https://ssrn.com/abstract=4021599 ## Verify Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust. curl -s https://wulfkaal.github.io/entities/securities-regulation.md | sha256sum **Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.