digital assets | FinTech and Blockchain Law Watch

Central Bank of Ireland Issues Important Clarification Regarding Investments in Digital Assets including certain Cryptocurrencies

Apr 10 2023

On 4 April 2023, the Central Bank of Ireland (the Central Bank) published the 47th edition of its Alternative Investment Fund Managers Directive (AIFMD) Q&A document (the AIFMD Q&A). See: https://www.centralbank.ie/docs/default-source/regulation/industry-market-sectors/funds/aifs/guidance/qa/aifmd-qa–edition-47.pdf?sfvrsn=86eb991d_1

NFA Imposes New Compliance Obligations on Members Engaged in Digital Asset Commodity Activities

Apr 03 2023

By Clifford C. Histed and Cheryl L. Isaac

Last week, after years of silence on the issue of digital asset regulation, the National Futures Association (“NFA”) promulgated new anti-fraud, just and equitable principles of trade, and supervision requirements on NFA Members that engage in “digital asset commodity activities.” Compliance Rule 2-51 puts NFA Members on notice that the NFA will assert enforcement authority over any fraudulent, manipulative, or deceitful activity related to Bitcoin and Ether spot transactions, and requires that NFA Members “diligently supervise” their employees and agents in the conduct of these activities.

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

Feb 13 2023

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).

California Legislators Continue To Assess How To Regulate Digital Assets

Aug 30 2022

By Jeremy McLaughlin and Josh Durham

For the fifth time since June 2022, California Senators have amended their proposed “Digital Financial Assets Law,” signaling a genuine desire to pass the bill as the Senate inches toward workable legislation.

SEC v. Wahi: An Enforcement Action That Could Impact the Broader Crypto / Digital Assets Industry

Jul 29 2022

By Andrew M. Hinkes and Josh Durham

The SEC has made a new crypto move. On July 21, the SEC filed a complaint in the U.S. District Court, Western District of WA against Wahi, a Coinbase employee, and two others alleging insider trading and charging them with securities fraud. The SEC alleged that nine of the crypto assets that Wahi and other defendants traded were “crypto asset securities”: AMP, RLY, DDX, XYO, RGT, LCX, POWR, DFX and KROM. This action is unique; unlike prior SEC enforcement actions brought against Poloniex, Coburn, TokenLot and others, which alleged the existence of digital asset securities being traded on various types of trading platforms, but failed to identify the specific alleged securities at issue or include any legal analysis of those alleged securities, here, the SEC “names names” and offers some analysis, but does not add the issuers of those 9 assets, or the platform upon which they are traded, as defendants.

California’s Executive Order Embraces Crypto

May 10 2022

By Jeremy McLaughlin and Christian A. Zazzali

On May 4, 2022, California Governor Gavin Newsom issued an executive order on digital assets largely echoing the positive sentiments of President Biden’s February executive order. The order looks to create transparent regulation around digital assets and drive innovation into the state. By directing state agencies to engage in a cooperative discussion with stakeholders and developers in web3, California seeks to create an informed supplement to the federal report on digital assets, which is due in September.

Taking Bitcoin to the Bank: FDIC Seeks Comments on Bank Services for Digital Assets

May 25 2021

By: Judie Rinearson, Jeremy McLaughlin, and Daniel S. Cohen

The Federal Deposit Insurance Corporation (FDIC) has issued a “Request for Information and Comment on Digital Assets” (RFI) to learn more about the “novel and unique considerations related to digital assets….[g]iven that banks are increasingly exploring the emerging digital asset ecosystem.” A key theme of the RFI is the development of a framework to promote “responsible innovation.” Comments are due by July 16, 2021.

Tag: digital assets