Skip to main content
Learn

What Preventative Compliance Measures Can a Company Take to Avoid a Cease and Desist Order?

Thorough legal analysis (Howey Test), rigorous vetting of marketing, robust KYC/AML procedures, and seeking a no-action letter.
Greeks.Live15.11.25

What Preventative Compliance Measures Can a Company Take to Avoid a Cease and Desist Order?

The company should conduct a thorough legal analysis (Howey Test) to ensure the token is structured as a utility, not a security. This includes rigorous vetting of all marketing materials to avoid promising investment returns.

Implementing robust Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures is also critical. Finally, seeking a no-action letter or utilizing a regulatory sandbox provides a proactive defense.

How Have Recent SEC Enforcement Actions Clarified the Application of the Howey Test to Tokens?
Does the “Know Your Customer” (KYC) Rule Apply to the Enforcement of Fiduciary Duty?
What Is the Risk of a “Cease and Desist” Order for a Non-Compliant Reverse ICO?
What Are the Key Differences between Institutional and Retail KYC/AML Procedures?

About

Contact

Editorial Policy

Terms of Service

Privacy Policy

Cookie Policy

© 2025 Greeks.Live

All Rights Reserved

Greeks.Live RFQ

Build by Noo on Engine

Source: The content on this website is produced by Greeks.live's proprietary analysis systems, which utilize advanced Large Language Models (LLMs). This information might not be subject to a full human review before publication and may contain errors.
Responsibility: You should not make any financial decisions based solely on the content presented here. We strongly urge you to conduct your own rigorous due diligence and to consult a qualified, independent financial advisor.
Purpose: All information is intended for informational purposes only. It should not be construed as financial, investment, trading, or any other form of professional advice. News and data are not trading signals.
Risk: The cryptocurrency, derivatives, and options markets are highly volatile and carry significant risk. By using this site, you acknowledge these risks and agree that Greeks.live and its affiliates are not responsible for any financial losses you may incur.