Author - Liz Bodey

1
CFTC Chair Asserts Jurisdiction Over Fiat-Based Stablecoins
2
EU/Luxembourg Update: New Blockchain/ DLT Pilot Regime for Financial Instruments Becomes Effective on March 23
3
In a Rare Decision On Abandoned Property Law, The US Supreme Court Rules Against Delaware
4
AUSTRALIA: Treasury Releases Token Mapping Consultation Paper
5
High-Level Summary: Solving Common Failures in NFT Licensing
6
Crypto Platform Kraken Pays $30 Million and Ceases Staking Services to Settle SEC Charges
7
The CFPB Proposes New Credit Card Late Fee Limits
8
“MetaBirkin” NFT Maker Liable in TM Dispute
9
UK Regulation of Cryptoassets – Another Glimpse but Still None the Wiser
10
Federal Reserve Issues Policy Statement Limiting Crypto-Activities of State Member Banks

CFTC Chair Asserts Jurisdiction Over Fiat-Based Stablecoins

By Cheryl L. Isaac and Maxwell J. Black

Last week, Commodity Futures Trading Commission (“CFTC”) Chair Rostin Behnam asserted that fiat-based stablecoins (such as USD Coin (USDC), Tether (USDT), and Binance USD (BUSD), all of which are pegged to an underlying fiat currency) should be considered as commodities, subject to the CFTC’s enforcement jurisdiction. 

Read More

EU/Luxembourg Update: New Blockchain/ DLT Pilot Regime for Financial Instruments Becomes Effective on March 23

By Dr. Jan Boeing and Maxime Barthez[1],

Luxembourg and the EU have taken an important step forward in the area of blockchain and Distributed Ledger Technology (“DLT”). With a view to removing regulatory hurdles to the issuance, trading and post-trading of many financial instruments for which an EU regulatory framework already exists (such as the regulation of transferable securities, units in collective investment undertakings and derivatives under MiFIR, MiFID II and CSDR[2]), the EU has put in place the DLT Pilot Regime through Regulation (EU) 2022/858 of 30 May 2022. The new DLT Pilot Regime applies (with certain limitations) to all (traditional) financial instruments within the meaning of MiFID II[3] that are issued, recorded, transferred and stored using blockchain or distributed ledger technology (“DLT Financial Instruments”).

Read More

In a Rare Decision On Abandoned Property Law, The US Supreme Court Rules Against Delaware

By Judie Rinearson, Jennifer Crowder, and Jeremy McLaughlin

On February 28, 2023, the US Supreme Court issued its decision in the abandoned property lawsuit, Delaware v. Pennsylvania (see https://www.supremecourt.gov/opinions/22pdf/145orig_kjfl.pdf)

The question addressed by the Court focused on which state was entitled to collect unclaimed property, which arose from  two financial products sold by banks on behalf of Moneygram: Agent Checks and Teller’s Checks (collectively, the “Checks”).

Read More

AUSTRALIA: Treasury Releases Token Mapping Consultation Paper

By Daniel Knight and Oliver Herrmann

New licensing requirements for crypto service providers are coming, following a series of consultations launched last week by Treasurer, Jim Chalmers. The Government approach focuses on strengthening enforcement, bolstering consumer protection and ultimately establishing a new licensing framework.

Read More

High-Level Summary: Solving Common Failures in NFT Licensing

By Drew Hinkes, Elizabeth Thomsen, Josh Durham

As blockchain and nonfungible tokens (NFTs) are still new technologies, their legal infrastructure is still developing, creating potential vulnerabilities. Three such vulnerabilities were exposed in our previous article, available here. We have now issued a follow-up Alert that explores solutions to such licensing failures.  This blog is a high-level summary;  the full alert can be found here.

Read More

Crypto Platform Kraken Pays $30 Million and Ceases Staking Services to Settle SEC Charges

By Drew Hinkes, Carly Howard, and Judie Rinearson

The Securities and Exchange Commission (SEC) announced a settlement with the digital assets/cryptocurrency exchange Kraken whereby Kraken agreed to cease offering or selling securities through its crypto asset staking services, and agreed to pay a penalty of $30 million (comprising disgorgement, prejudgment interest, and civil penalties).

Read More

The CFPB Proposes New Credit Card Late Fee Limits

By John ReVeal

On February 1, 2023, the CFPB proposed new rules to reduce the late fees that credit card issuers may charge to consumers (the “Proposed Rules”).  The CFPB refers to current late fees as “over the top” and “exorbitant.”  The CFPB indicates that it believes it has the authority to limit late fees under the CARD Act of 2009, which amended the Truth in Lending Act to require that late fees and other penalty fees be “reasonable and proportional to” the consumer’s violation of the cardholder agreement.     

Read More

“MetaBirkin” NFT Maker Liable in TM Dispute

By Terrance D. Roberts

On February 8, 2023, a Manhattan federal jury found Mason Rothschild liable for trademark infringement for his non-fungible tokens (“NFTs”) called ‘MetaBirkins’. After only 3 days of deliberation, the 9 person jury sided with Hermѐs International and found Rothschild liable for trademark infringement, trademark dilution, and for unlawfully cybersquatting on the domain name MetaBirkins.com.

Read More

UK Regulation of Cryptoassets – Another Glimpse but Still None the Wiser

By Kai Zhang and Judie Rinearson

On 1 February, UK Government commenced another consultation on regulating cryptoassets (other initiatives consulted earlier remain being considered/legislated) which will close on 30 April. This is a consultation on the overall policy approach, i.e. no detailed rules.

Read More

Federal Reserve Issues Policy Statement Limiting Crypto-Activities of State Member Banks

By Grant F. Butler, Carly E. Howard, Andrew M. Hinkes

The Board of Governors of the Federal Reserve (the “FRB”) issued a policy statement that interprets Section 9(13) of the Federal Reserve Act to limit state member banks to engage as principal in only activities that are (a) permissible for a national bank or (b) explicitly permissible for state banks under federal law.  The activity restrictions apply equally to insured and uninsured state member banks supervised directly by the FRB. 

Read More

Copyright © 2023, K&L Gates LLP. All Rights Reserved.