The U.S. Court of Appeals for the D.C. Circuit (the “Court”) issued a major ruling against the Securities and Exchange Commission (“SEC”) on August 29, 2023, holding that the SEC acted arbitrarily and capriciously when it...more
A Southern District of California federal district court in Sarcuni v. bZx DAO held on March 27, 2023, that decentralized autonomous organizations (“DAOs”), which are member-owned communities that maintain financial records...more
In a recent judgment the English High Court has again shown its ability to innovate so as to assist victims of crypto fraud. By imposing a constructive trust on a crypto exchange and permitting service of an order for summary...more
12/8/2022
/ Beneficial Owner ,
Bitcoin ,
Blockchain ,
Corporate Counsel ,
Crypto Exchanges ,
Cryptoassets ,
Cryptocurrency ,
Dispute Resolution ,
Fraud ,
Non-Fungible Tokens (NFTs) ,
Popular ,
Software ,
Summary Judgment ,
UK
The U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) on August 8, 2022, imposed sanctions against the popular decentralized virtual currency mixer Tornado Cash alleging that it has been used to launder...more
9/16/2022
/ AML/CFT ,
Blockchain ,
Cyber Crimes ,
Data Privacy ,
Decentralized Finance (DeFi) ,
Ethereum ,
Financial Transactions ,
International Emergency Economic Powers Act (IEEPA) ,
Money Laundering ,
Office of Foreign Assets Control (OFAC) ,
Ransomware ,
Sanctions ,
SDN List ,
State Sponsors of Cyberattacks ,
U.S. Treasury ,
Virtual Currency ,
Wire Transfers
Emerging technologies, such as bitcoin, blockchain and non-fungible tokens (“NFTs”), have led to the creation of massive alternative investment vehicles, additional portfolio diversification as well as expansion of the...more
8/11/2022
/ Artificial Intelligence ,
Bitcoin ,
Blockchain ,
Cryptocurrency ,
Digital Assets ,
Distributed Ledger Technology (DLT) ,
Emerging Technologies ,
Non-Fungible Tokens (NFTs) ,
Proposed Amendments ,
Regulatory Reform ,
Uniform Commercial Code (UCC) ,
Uniform Law Commission (ULC)
In a recent innovative ruling, the English High Court has granted permission for a claim to be served on a defendant by non-fungible token (NFT), embracing blockchain technology and taking a pragmatic view on the most...more
8/3/2022
/ Blockchain ,
Crypto Exchanges ,
Cryptocurrency ,
Digital Wallets ,
Financial Fraud ,
Litigation Strategies ,
Misrepresentation ,
Non-Fungible Tokens (NFTs) ,
Popular ,
Service of Process ,
UK ,
Unjust Enrichment
On 30 June 2022, the European Council (Council) and the European Parliament (Parliament), announced that they had reached a provisional agreement on the proposal for regulation on markets in cryptoassets (MiCA), which covers...more
7/15/2022
/ Asset Management ,
Blockchain ,
Corporate Counsel ,
Cryptoassets ,
Distributed Ledger Technology (DLT) ,
EU ,
Financial Markets ,
Financial Regulatory Reform ,
Financial Services Industry ,
FinTech ,
Investment Opportunities ,
Investor Protection ,
Non-Fungible Tokens (NFTs) ,
Popular ,
Regulatory Agenda ,
Regulatory Standards ,
Stablecoins ,
Token Sales
DFS Guidance -
The New York State Department of Financial Services (DFS) Superintendent Adrienne A. Harris issued new DFS Regulatory Guidance (Guidance) on June 8, 2022, setting foundational criteria for USD-backed...more
In an important ruling, the English High Court has recognised for the first time that there is an arguable case that non-fungible tokens (NFTs) are to be treated as property under English law. This means that the powerful...more
6/29/2022
/ Blockchain ,
Corporate Counsel ,
Cryptocurrency ,
Digital Assets ,
Financial Markets ,
Fraud ,
Investment Opportunities ,
Investor Protection ,
Non-Fungible Tokens (NFTs) ,
Popular ,
UK ,
UK Supreme Court
Introduction -
Cryptocurrencies have surged in popularity in recent years. As we have reported in recent OnPoints, the swift growth and adoption of cryptocurrencies raise legal questions about everything from their...more
On Wednesday, March 9, President Biden issued an Executive Order entitled Ensuring Responsible Development of Digital Assets. The President’s order represents the first time that the White House has sought to develop a...more
4/5/2022
/ Biden Administration ,
Bitcoin ,
Blockchain ,
Central Bank Digital Currency (CBDCs) ,
Cryptocurrency ,
Digital Assets ,
Executive Orders ,
Financial Regulatory Reform ,
Financial Services Industry ,
Financial Transactions ,
Investment Contract ,
Investor Protection ,
Regulatory Agenda
The President’s Working Group on Financial Markets (PWG), joined by the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency (OCC), released a Report on Stablecoins (Report) on November 1,...more
Whether a cryptocurrency product is a security is an issue with serious regulatory consequences. In recent years, the Securities and Exchange Commission (“SEC”) has taken a broad position that various crypto assets are...more
11/19/2021
/ Bitcoin ,
Blockchain ,
Cryptocurrency ,
Digital Assets ,
Financial Instruments ,
Financial Markets ,
Howey ,
Investment Contract ,
Investment Opportunities ,
Popular ,
Regulatory Agenda ,
Regulatory Oversight ,
Securities and Exchange Commission (SEC) ,
Virtual Currency
Blockchain technology continues to mature and gain acceptance for a wide range of potentially disruptive financial and commercial uses. In the wake of COVID-19, we have seen an increased focus on the research and development...more
8/18/2020
/ 3D Printing ,
Bank of England ,
Blockchain ,
China ,
Coronavirus/COVID-19 ,
Decentralized Finance (DeFi) ,
Digital Assets ,
Digital Currency ,
Financial Institutions ,
FinTech ,
Innovative Technology ,
Japan ,
Medical Devices ,
MiPasa ,
Popular ,
Stablecoins ,
UK ,
Virtual Currency ,
World Health Organization
The Staffs of the Securities and Exchange Commission’s Division of Trading and Markets and the Financial Industry Regulatory Authority’s Office of General Counsel (jointly, Staffs) issued a Joint Statement on July 8, 2019...more
8/12/2019
/ Blockchain ,
Books & Records ,
Broker-Dealer ,
Custody Rule ,
Customer Protection Rule ,
Digital Assets ,
Digital Securities ,
Financial Industry Regulatory Authority (FINRA) ,
Financial Reporting ,
Investor Protection ,
Joint Statements ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act ,
SIPA
Through a March 12, 2019 letter (Letter), Paul Cellupica, Deputy Director and Chief Counsel of the SEC’s Division of Investment Management, on behalf of the Division’s staff invited industry engagement and sought information...more
3/23/2019
/ Blockchain ,
Comment Period ,
Custody Rule ,
Digital Assets ,
Distributed Ledger Technology (DLT) ,
Guidance Update ,
Investment Adviser ,
Investment Company Act of 1940 ,
Non-DVP ,
Proposed Rules ,
Public Comment ,
Securities and Exchange Commission (SEC)
Over the past two years, prices for cryptocurrencies and other digital assets have experienced extreme gains and declines, while billions of dollars have been raised through Initial Coin Offerings (“ICOs”). In this dynamic...more
2/1/2019
/ Anti-Money Laundering ,
Blockchain ,
CFTC ,
Civil Monetary Penalty ,
Commodities ,
Criminal Investigations ,
Cryptocurrency ,
Department of Justice (DOJ) ,
Digital Assets ,
Disgorgement ,
Distributed Ledger Technology (DLT) ,
Enforcement Actions ,
Entrepreneurs ,
Financial Regulatory Agencies ,
FinCEN ,
FinHub ,
Fraud ,
Initial Coin Offering (ICOs) ,
Investors ,
Misleading Statements ,
Office of Foreign Assets Control (OFAC) ,
Popular ,
Risk Management ,
Risk Mitigation ,
Sanction Violations ,
SDN List ,
Securities and Exchange Commission (SEC) ,
Securities Tokens ,
Startups ,
State Regulators ,
Token Sales ,
U.S. Treasury ,
Unregistered Securities ,
Utility Tokens
For years, regulators around the world have struggled with whether and how to police the offering and exchange of digital assets (including virtual currencies such as Bitcoin). In the United States, such efforts were stymied...more
12/17/2018
/ Bitcoin ,
Blockchain ,
Blocked Person ,
CFTC ,
Compliance ,
Cryptocurrency ,
Digital Assets ,
Economic Sanctions ,
FinCEN ,
Initial Coin Offering (ICOs) ,
Office of Foreign Assets Control (OFAC) ,
Risk Assessment ,
SDN List ,
Securities and Exchange Commission (SEC) ,
Virtual Currency
With soaring cryptocurrency prices attracting significant new investment in late 2017, U.S. regulators sought to fill the statutory void by exercising jurisdiction over a variety of digital assets. That trend continued in the...more
6/28/2018
/ Bitcoin ,
Blockchain ,
CFTC ,
Commodities ,
Cryptocurrency ,
Digital Assets ,
Digital Currency ,
Enforcement Actions ,
Initial Coin Offering (ICOs) ,
Popular ,
Public Offerings ,
Regulatory Oversight ,
Securities ,
Securities Act of 1933 ,
Securities and Exchange Commission (SEC) ,
State Securities Regulators ,
Token Sales ,
Virtual Currency