December 19th, 2024
Dear ICAN Partners,
When I wrote to you in January about giving up my partnership at Paul Hastings, an international law firm, to focus full-time on building ICAN, I promised that 2024 would be a transformative year in our fight against SEC overreach. As the year comes to an end, I am enormously proud and humbled to share that - thanks to the encouragement and active support of so many of you - our team has been able to deliver on that promise, establishing ICAN as a leading voice for market freedom and a powerful champion for the small entrepreneurs and investors whose efforts help to drive our economy.
In this month’s update, we share some of the highlights from ICAN’s banner year. But this is no time to rest on our laurels. With the changing political landscape in Washington, and the push for regulatory reform now front and center, ICAN’s work has never been more important. The ICAN team has the experience and technical expertise to help accelerate meaningful reform, ensuring leaders in Washington are equipped to make informed decisions when it comes to capital markets. We have developed a list of practical SEC reforms the incoming Administration could take up—many of them with the stroke of a pen—to expand access to capital markets and relieve the weight of undue burden on America’s entrepreneurs and investors.
At the same time, as the only national organization solely focused on corralling the unwieldy powers of the SEC back within its rightful boundaries, ICAN will continue to ramp up our direct litigation and watchdog efforts as we move into the new year. We've seen time and again that changes in political leadership rarely slow the steady expansion of regulatory enforcement. So ICAN will continue to be there to defend those small investors and entrepreneurs unfairly impacted by SEC overreach and challenging its ever-growing labyrinth of restrictions and requirements that too often deter market engagement. With those strategically selected direct litigation cases and other legal actions, we will continue to build and strengthen precedent-based limitations on the SEC’s reach—meaningful, lasting change that will transcend election cycles.
Thanks to the dedication of our supporters and ICAN’s nationwide network of legal partners, we've already begun establishing these crucial precedents. Let me share some of what we've accomplished together this year:
Our First Case Delivers Critical Victory
We began 2024 by taking on our first direct representation case - SEC v Punch TV. I'm proud to report that this case concluded with a strong victory, with the court rejecting the SEC's demand for $1.35 million in disgorgement and awarding $0 in disgorgement. Importantly, the judge also rejected the regulatory agency's attempt to water down the limits placed on its disgorgement powers by the Supreme Court—an essential block by ICAN that will help protect future entrepreneurs from similar attempted shakedowns by the SEC. You can read about the critical victory in this case here.
Supreme Court Amicus Victory Reshapes SEC Enforcement
ICAN helped elevate the national profile of SEC v Jarkesy and the issues at stake when we filed a brief co-signed by Mark Cuban and Elon Musk. There was a marked increase in media attention about SEC v Jarkesy after our brief. The degree to which we helped drive the public narrative of the case was highlighted when I was one of only two experts unconnected to the parties quoted in the Wall Street Journal’s article about the Court’s ruling. This decision fundamentally reshapes how the SEC must approach enforcement actions, providing crucial due process protections for defendants.
Taking Bold Action: Challenging the SEC's Outdated Investment Rules
On Friday, ICAN took another important step in our ongoing effort to expand access to capital markets. After two years of attempting to work with the SEC to modernize the Accredited Investor restrictions, and the agency refusing to engage, we have taken decisive action, filing a petition formally challenging the outdated definition that effectively excludes most Americans from private market investments simply because they don't meet arbitrary wealth and income thresholds. This fight is about a simple principle: in a country where anyone can gamble their money away on sports betting apps, why should hard-working Americans be barred from choosing to invest in ways that could build generational wealth? See the court filing and more here.
Building a Nationwide Network of Elite Legal Talent
What sets ICAN apart is our unique model of leveraging an extensive network of top-tier law firms and experienced securities lawyers across the country. In our first year alone, we've represented six clients pro bono in precedent-setting cases and filed eleven strategic amicus briefs in courts nationwide. This growing coalition—with firms frequently reaching out to join our fight—multiplies our impact by providing access to exceptional legal talent, extensive resources, and broader geographical reach. Together, we're building a formidable force for change in securities regulation.
Recognition of ICAN's Innovation and Leadership
In just our first year, ICAN has earned recognition validating our innovative approach and the exceptional talent driving our mission. Our selection as one of six finalists for the Gregor G. Peterson Prize in Venture Philanthropy acknowledges our unique strategy of using targeted litigation to create systemic change. Additionally, I was proud to be named to Securities Docket's prestigious Enforcement Elite List for 2024, along with fellow board member Thomas Zaccaro, and ICAN Advisory Board member Sarah Heaton Concannon—a testament to the deep expertise and respected leadership guiding ICAN’s work.
Shaping Policy Discussions
In May, I had the privilege of testifying before the U.S. House Committee on Financial Services' Subcommittee on Capital Markets at their hearing on "SEC Enforcement: Balancing Deterrence with Due Process." Our message was clear: enhanced due process doesn't compromise enforcement effectiveness—but insufficient due process certainly deters small investors and entrepreneurs from accessing capital markets. This testimony represented another step in our efforts to bring practical reform ideas to policymakers. Revisit the highlights here.
Looking Ahead 2025
As we enter 2025, ICAN is positioned to build on these achievements and expand our impact further. Each case we take on represents not just an individual fight for justice, but an opportunity to establish precedents that protect market freedom for everyone. Watch for our announcement in early January outlining our strategic roadmap for accelerating SEC reform in the year ahead.
Your continued support makes this work possible. If you'd like to help us build on this momentum, please consider making a year-end tax-deductible donation. You can also share our work with others who care about improving our capital markets and reining in regulatory overreach.
With appreciation for your partnership in this crucial work,
Nick Morgan
Founder and President of ICAN
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