February 15, 2019

UPDATE – NOT SO FAST INDEED: DISTRICT COURT BALKS AT SEC’S BLANKET CHARACTERIZATION OF TOKENS AS SECURITIES BUT THEN RECONSIDERS RULING

An issue of major importance to cryptocurrency and digital token markets has been whether tokens were all to be considered securities under U.S. law.  The SEC’s frequent admonishments that it would consider ICOs to be securities offerings has caused a dramatic slowdown in the US ICO market.  In one of the first cases to test… Read More

December 28, 2018

New York AG Puts Crypto Exchanges in the Crosshairs

Following on the heels of the SEC’s announcement of subpoenas to crypto exchanges and token issuers, yesterday New York Attorney General Eric Schneiderman announced “the Virtual Markets Integrity Initiative,” which he described as “a fact-finding inquiry into the policies and practices of platforms used by consumers to trade virtual or ‘crypto’ currencies like bitcoin and… Read More

July 9, 2018

Cryptocurrency Exchanges Must Navigate An Outdated Regulation System

More consumers are adopting cryptocurrency than ever, but regulators are less enthusiastic. As a result, cryptocurrency exchanges spend unnecessary time and resources working to comply with outdated guidelines. Kraken, which oversees $150 million in daily cryptocurrency transactions, is the latest exchange to experience this problem. In an effort to bring itself into compliance with current… Read More

May 15, 2018

How to Raise Capital Through Registration Exempt ICOs

The SEC has strongly indicated that initial coin offerings (ICOs) will be treated as securities, and thus must comply with various registration and disclosure requirements before being used to raise capital. Companies do have, however, several options for possible exemptions from the regulatory requirements that apply to registered public offerings. This chart outlines potential exemptions… Read More

March 1, 2018

If ICOs are Securities: What Cryptocurrency Issuers, Exchanges and Gatekeepers Need to Know.

As predicted, the Securities and Exchange Commission (SEC) has taken additional steps to clamp down on the exploding ICO market: yesterday the Wall Street Journal  reported the agency had issued “dozens of subpoenas and information requests to technology companies and advisors.” After repeated warnings from regulators like SEC Chairman Jay Clayton, the SEC is now sending… Read More

February 28, 2018

Full Metal Cryptojacket

In retrospect, it all seems so predictable. International capitalism creates virtual currencies. Banks are avoided. Millennials hail a new world order of anonymous or nearly untraceable market transactions. Numerous parties and exchanges hold on to large quantities of virtual currencies. But then the bad guys show up. And I’m not talking about the regulators. Last month, in what looks like the… Read More

February 20, 2018

Coming Soon: Digital Asset Regulation

In January, Bitcoin dropped to approximately 50% of its 2017 peak price.  Other digital currencies saw similar declines. Most market observers blamed these massive price fluctuations on related events: (i) widespread reports of fraud and price manipulation, and (ii) increasing prospects for the regulation of digital assets and currencies. Indeed, 2018 has brought us federal… Read More

February 5, 2018

Social Media’s Hesitation to Promote Cryptocurrencies Explained

In a paradox of sorts, cryptocurrency’s continued survival may hinge on its submission to greater regulatory oversight. Such a notion is paradoxical in the sense that cryptocurrency’s origins can be traced to a “stick it to the man” mentality in which currency is decentralized and not tied to any one governmental body. Thus, submitting to… Read More