Solidus Digital Assets Trade Surveillance and Regulation News Briefing | December

Solidus Labs
December 20, 2018

Everything you need to know from the past few weeks: Globally, governments tighten definitions of digital assets to prevent legal confusion; SEC enforcement action leads to $2.7 million fine; Crypto users doubled in 2018; Trump’s new Chief of Staff is pro-crypto

Before diving into developments from the digital asset space, check out Solidus CEO Asaf Meir’s op-ed in Finance Magnates: The Bitcoin ETF Saga: Rethinking Trade Surveillance

Regulation and Legislation News

  • Today, two U.S. congressmen introduced a bill that seeks to put on paper much needed definitions regarding digital assets, provide boundaries but also wiggle room to allow innovation.
  • SEC Chairman Jay Clayton stated that key safeguards, namely effective market surveillance and custody solutions, are necessary for his agency to approve a crypto ETF.
Crypto ETF — the SEC will need to see better surveillance to approve
Trump’s new Chief of Staff — made pro-crypto statements

Our take: Governmental efforts to better define digital asset regulation are intensifying worldwide. Wherever you look, regulation is coming, in the form of new crypto-specific law, or based on existing finance rules.

Enforcement News

CoinAlpha’s cease and desist. More examples for enforcement that’s harsh, but still relatively forgiving

  • Texas District Attorney is indicting the CEO of a Dallas-based cryptocurrency firm for defrauding investors our of $4 million, with criminal charges pending and a potential 120-year prison sentence.
  • The British FCA, reportedly, is investigating 50 cryptoasset businesses for operating unregulated financial businesses. U.S. authorities are currently investigating at least 250 digital asset firms.

Our take: With enhanced regulation comes enforcement that’s harsh but still relatively forgiving. Regulators are signaling to the market that actors that don’t work towards self-regulation and compliance, will pay a heavy price.

Blockchain and Digital Asset Ecosystem Growth News

Real crypto users doubled in 2018. Source: Cambridge Center for Alternative Finance

Our take: As the cryptocurrency pricing and trading volumes continue to fluctuate, we continue to look at undercurrents indicating the ecosystem is growing.

Digital Asset Market Manipulation News

Our take: The sheer size of manipulation in blockchain-based exchanges continues to be revealed as new studies shed light on the challenge.


Solidus Labs uses 20 years of Wall Street FinTech experience to provide machine learning-powered trade surveillance tailored for cryptoassets. Our products help exchanges, broker dealers, market makers and other financial service providers detect and combat manipulation in digital asset trading, and streamline reg-reporting.

To learn more about our product schedule a demo, visit www.soliduslabs.comor contact us at We’re always happy to start a conversation.