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Below is a summary of some of the significant legal and regulatory actions that occurred over the past week. This alert is not intended to be a comprehensive list of all such developments, but rather a selection of publicly-reported news that may be of particular interest.

U.S. Developments

Litigation Updates

CFTC Files Civil Action Over Alleged Fraudulent Scheme
On September 21st, the Commodity Futures Trading Commission (“CFTC”) announced the filing of claims against Nicholas Gelfman and Gelfman Blueprint, Inc. (the “Defendants”) for fraud, misappropriation, and issuing false account statements in connection with solicited investments in Bitcoin.  According to the allegations asserted by the CFTC, the Defendants operated a Ponzi scheme, misappropriated funds from investors, and took steps to conceal losses (including by staging a “hack” on its computer systems designed to conceal what were actually trading losses and depletion of funds due to misappropriation).

Notably, this enforcement action (1) articulates the CFTC’s position that Bitcoin and other virtual currencies are encompassed in the definition of a “commodity,” under…
Continue Reading Blockchain Week in Review – October 13, 2017

Below is a summary of some of the significant legal and regulatory actions that occurred over the past week. This alert is not intended to be a comprehensive list of all such developments, but rather a selection of publicly-reported news that may be of particular interest.

U.S. Developments
Regulatory Updates

Congressional Bill Introduced to Modify Taxation of Small Cryptocurrency Purchases
Last week, Rep. Jared Polis (D – Colo.) and Rep. David Schweikert (R – Ariz.) introduced the Cryptocurrency Tax Fairness Act of 2017 (the “Bill”). The bipartisan legislation creates a structure for taxing purchases made with cryptocurrency. The Bill’s primary goal is to ease the burden on those who make purchases with cryptocurrency by establishing a threshold under which they would not be required to report profits and losses – thus making it easier to keep track of tax obligations. In doing so the Bill would bring cryptocurrency under a…
Continue Reading Blockchain Week in Review – September 15, 2017

Below is a summary of some of the significant legal and regulatory actions that occurred over the past week. This alert is not intended to be a comprehensive list of all such developments, but rather a selection of publicly-reported news that may be of particular interest.

U.S. Developments

Regulatory Updates

Alabama’s New Virtual Currency Regulations
This month, the Alabama Monetary Transmission Act officially replaced the 1961 “Sale of Checks Act.” The bill was passed by the Alabama Legislature in May.  The new Money Transmitter Act covers the regulation of traditional money transfers to virtual currency. It also provides new tools for …
Continue Reading Blockchain Week in Review – August 18, 2017

Below is a summary of some of the significant legal and regulatory actions that occurred over the past week. This alert is not intended to be a comprehensive list of all such developments, but rather a selection of publicly-reported news that may be of particular interest.

U.S. Developments

Regulatory Updates

Illinois Regulators Determine that Digital Currencies Are Not Considered Money
In new guidance provided and finalized by the Illinois Department of Financial and Professional Regulation (“IDFPR”), the agency has taken the stance that decentralized digital currencies are not money because they are not “authorized or …
Continue Reading Blockchain Week in Review – June 16, 2017

Below is a summary of some of the significant legal and regulatory actions that occurred over the past week. This alert is not intended to be a comprehensive list of all such developments, but rather a selection of publicly-reported news that may be of particular interest.

U.S. Developments

Regulatory Updates

Vermont Law Recognizes Digital Currency as a Permissible Investment
Earlier this month, Vermont Governor Phil Scott signed…
Continue Reading Blockchain Week in Review – May 26, 2017

Below is a summary of some of the significant legal and regulatory actions that occurred over the past week. This alert is not intended to be a comprehensive list of all such developments, but rather a selection of publicly-reported news that may be of particular interest.

U.S. Developments

Regulatory Updates

Washington State Legislators Prepare Bill To Regulate Virtual Currencies
In Washington, Senate Bill 5031 was introduced by Senators Jan Angel and Mark Mullet in January. Both legislative chambers have now approved the bill, which was delivered  Thursday to Governor Insleee for approval. The bill provides new rules for companies that deal in digital currency services.…

Continue Reading Blockchain Week in Review – April 17, 2017

Below is a summary of some of the significant legal and regulatory actions that occurred over the past week. This alert is not intended to be a comprehensive list of all such developments, but rather a selection of publicly-reported news that may be of particular interest.

U.S. Developments

The Saga of Coinbase and its IRS John Doe Summons Continues
In November 2016 with approval from a federal court, the IRS served a John Doe summons on Coinbase requesting information on its users from January 1, 2013 through December 31, 2015 reportedly to catch individuals using crypto currency to evade taxes.  In an effort to work with the IRS without disclosing an overly broad amount of private customer information, Coinbase suggested an alternative solution:  issuing 1099-B reports, which brokerage firms use to report customers’ gains and losses.  The issue remains unresolved.  See Laura Shin, Forbes.com, http://www.forbes.com/.…

Continue Reading Blockchain Week in Review – February 3, 2017

The Office of the Comptroller of the Currency (“OCC”) announced today that it plans to move forward with considering applications from financial technology (fintech) companies to become special purpose national banks.  OCC Press Release from Dec. 2, 2016.  The OCC has concluded, among other things, that “applying a bank regulatory framework to fintech companies will…

Below is a summary of some of the significant legal and regulatory actions that occurred over the past week. This alert is not intended to be a comprehensive list of all such developments, but rather a selection of publicly-reported news that may be of particular interest.

U.S. Developments

OCC Moves Forward with Plans to Develop…