News & Analysis as of

Digital Assets Cryptoassets Securities

Polsinelli

Assessing the Landscape: One Year into the SEC’s Litigation Against Major U.S. Digital Asset Exchanges

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The SEC’s litigation against the largest digital asset exchanges in America has been unfolding for over a year, beginning with the agency suing various Binance entities in June 2023, followed by actions against Coinbase...more

Polsinelli

Blockchain+ Bi-Weekly: July 2024

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The last week of June saw a flurry of legal developments in quick succession. The SEC sued Consensys, the developers of the largest self-custodial digital wallet (MetaMask). The IRS released its digital asset tax rules. The...more

K&L Gates LLP

SEC Expands "Dealer" Definition to Capture Liquidity Providers

K&L Gates LLP on

Introduction - On 6 February 2024, the US Securities and Exchange Commission (SEC) voted 3-2 to adopt two new rules that significantly expand the definitions of a “dealer” and “government securities dealer” in Sections...more

Winstead PC

Judge Rules That Terraform’s Crypto Assets are Securities

Winstead PC on

Last year, the Court in SEC v. Terraform Labs suggested, by denying the defendants’ motion to dismiss, that the sale of a digital asset to the public on a secondary market may constitute a security. Now, the Court has...more

ASKramer Law

A Comprehensive Guide to the Deductibility of Digital Asset Losses

ASKramer Law on

In November 2023, almost 11,000 cryptocurrencies and digital tokens were listed on CoinMarketCaps.com. In addition, tens of thousands of non-fungible tokens (NFTs) are sold daily on various crypto exchanges and NFT platforms....more

Holland & Knight LLP

The Latest from the World of Ripple and Its (Ripple) Effects

Holland & Knight LLP on

The same day that the U.S. District Court for the Southern District of New York (SDNY) in SEC v. Ripple Labs, Inc. denied the SEC's request for an interlocutory appeal of the bombshell summary judgment ruling in the case, the...more

Bennett Jones LLP

Canadian Regulators Continue Enforcement Efforts Aimed at Offshore Crypto Platforms

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Canadian regulators want to ensure that crypto-asset trading platforms (CTPs) know that they will not be able to evade Canadian and Ontario securities law sanctions by withdrawing from the Canadian market. As part of a...more

Wilson Sonsini Goodrich & Rosati

Two New Rulings from the SDNY with Mixed Messages for Crypto: Potential Implications for Regulation of the Crypto Industry

A pair of recent rulings from the Southern District of New York (SDNY) have potentially increased confusion around the regulatory status of crypto asset regulation—but may also provide some interesting signs of what’s to...more

Barnea Jaffa Lande & Co.

Securities, Digital and financial assets: New Definitions

The Israel Securities Authority recently promulgated its revised legislative proposal addressing the applicability of securities laws to digital assets. The proposed legislation aims to determine how securities laws will...more

Dechert LLP

The Southern District of New York Splits on Whether a Digital Token is a “Security”

Dechert LLP on

In the latest decision evaluating the application of federal securities laws to the digital asset context, Judge Jed S. Rakoff of the United States District Court for the Southern District of New York (“SDNY”) ruled in favor...more

Barnea Jaffa Lande & Co.

Crypto as a Security – Applying the Howey Test

A US court recently handed down a landmark ruling addressing the question of whether the crypto token XRP falls under the definition of “security”. The US court ruled that the same crypto token may be classified differently...more

Dorsey & Whitney LLP

Ripple and Howey

Dorsey & Whitney LLP on

The questions revolving around crypto assets typically begin with examining if a security is involved. The answer to that question is determined by applying the Howey test and frequently concluding that the asset is in fact a...more

BakerHostetler

U.S. District Court Signals That In Certain Cases, NFTs May Qualify as Securities

BakerHostetler on

Dapper Labs was founded in 2018 shortly after the debut of its first NFT collection, “CryptoKitties,” which was so successful it created a bottleneck of transactions on the decentralized Ethereum Network. Seeking faster...more

Allen Matkins

Assembly Member Takes Another Run At Digital Financial Asset Law

Allen Matkins on

In June of last year,  noted the introduction of a bill that would subject digital financial asset businesses to licensing in California. In September, Governor Gavin Newsom vetoed the bill stating that it would be "premature...more

Orrick, Herrington & Sutcliffe LLP

Company to pay $45 million to SEC, states for unregistered crypto-lending product

On January 19, the SEC charged a Cayman Islands digital asset firm for allegedly failing to register the offer and sale of its retail crypto-asset lending product. According to the SEC’s cease-and-desist order ...more

Pillsbury Winthrop Shaw Pittman LLP

How Are Digital Assets Regulated in the United States and Elsewhere?

Continuing instability in the crypto sector highlights the need for clear regulation for efficient development, but how best to regulate is an ongoing debate. Recent instability in the crypto sector will only intensify the...more

Skadden, Arps, Slate, Meagher & Flom LLP

Rise in Crypto Securities Filings Could Persist

Increased regulatory oversight and recent turmoil in the digital asset market have led to a rising number of securities litigations focusing on cryptocurrencies. Sixteen cryptocurrency-related class actions have been filed...more

Allen Matkins

James Joyce Meets Cryptoassets

Allen Matkins on

In a recent post on the Harvard Law School Forum on Corporate Governance, Jai Massari discusses a new paper that argues  fungible cryptoassets are not securities under existing U.S. federal securities laws while initial coin...more

Kramer Levin Naftalis & Frankel LLP

The SEC’s Limited Guidance on Crypto Tokens in No-Action Letters

The Securities and Exchange Commission (SEC or Commission) has been accused of “regulation by enforcement” when it comes to the standard for determining whether a crypto token is a security. Part of this stems from the fact...more

ArentFox Schiff

All Your Ether (Are) Belong To US: SEC Claims Jurisdiction Over Entire Ethereum (ETH) Network

ArentFox Schiff on

The US Securities and Exchange Commission (SEC) has filed an enforcement action against crypto influencer Ian Balina in the Western District of Texas alleging that he promoted unregistered securities in connection with the...more

A&O Shearman

UK Jurisdiction Taskforce Publishes Consultation on Transfer of Digital Assets

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The U.K. Jurisdiction Taskforce has published a consultation on the issuance and transfer of "digital securities" under English law. Digital securities are shares, bonds and other debt securities which are constituted by...more

A&O Shearman

Former Cryptocurrency Exchange Manager Indicted by DOJ and Charged by SEC: Is It 'Regulation by Enforcement'?

A&O Shearman on

On July 21, 2022, the Department of Justice (“DOJ”) and the Securities and Exchange Commission (“SEC”) for the first time brought insider trading charges involving cryptocurrency assets. The SEC and DOJ charged a former...more

Goodwin

SEC Alleges “Crypto Asset Securities” Insider Trading; Case Has Significant Implications For The Digital Asset Industry

Goodwin on

On July 21, 2022, the SEC charged three individuals with insider trading of digital assets via a scheme to trade ahead of multiple announcements regarding crypto assets being made available on a United States-based digital...more

K&L Gates LLP

Luxembourg Financial Services Regulator CSSF Issues White Paper On Distributed Ledger Technology - DLT Financial Instruments on...

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In the context of enhanced interest in digital financial services technologies, Luxembourg’s financial sector regulator (the CSSF) has recently published a white paper named “Distributed Ledger Technologies & Blockchain –...more

Latham & Watkins LLP

New US Digital Assets Bill Casts Wide Net

Latham & Watkins LLP on

An ambitious proposal could bring digital assets into the mainstream regulatory fold. During an eventful summer for the digital assets industry, it may have been easy to miss US Representative Don Beyer’s introduction of the...more

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