Regulatory and Legislative Developments

Weekly Focus:

  • Jay Clayton to step down as Chairman of the Securities and Exchange Commission
  • Brian Brooks nominated to five-year term as Comptroller of Currency
  • Origin Protocol attacked, resulting in estimated loss of $7 million
  • SEC issues no-action letter for IMVU
  • Mitsubishi UFJ Financial Group plans launch of blockchain payments network in 2021
  • Texas State Securities Board files emergency cease-and-desist orders against ten digital asset investment platforms


Continue Reading Blockchain Week in Review: Week of November 20, 2020

Perkins Coie is pleased to announce that it has obtained no-action relief from the Securities and Exchange Commission Staff that clears the way for its client IMVU Inc., to sell VCOIN, a blockchain-based digital asset, as a transferable non-security to its users worldwide.

IMVU is the world’s largest avatar-based social platform with a global network

Weekly Focus:

  • DOJ Seizes More Than $1 Billion in Cryptocurrency from Silk Road Hacker
  • CFTC Announces Charges Against Digital Asset Ponzi Scheme
  • SEC’s Enforcement Division Collected $4.68 Billion in 2020
  • Vortex Blockchain Technologies Settles with the SEC
  • Blockchain Industry Speculates on Regulation in a Biden Administration
  • LabCFTC Announces Agenda for Empower Innovation 2020
  • Cred Inc. Files for Chapter 11 in Delaware
  • Deutsche Bank Publishes Report on CBDC
  • Reserve Bank of Australia Partners with Blockchain Company on CBDC Project
  • Lebanon’s Central Bank Progresses on Plans for CBDC
  • Russian Central Bank Issues CBDC Consultation Paper
  • Bank of Canada Is Working with G7 on Global Approach to Digital Currencies
  • The U.K. Treasury Announces Plans to Regulate Stablecoins
  • Germany Drafts Bill for Blockchain-Based Securities


Continue Reading Blockchain Week in Review: Week of November 13, 2020

Counsel Sarah Shtylman will be a part of the The Block Presents: DeFi and The Law – A round table discussion with crypto’s leading lawyers

Link to register: https://app.livestorm.co/the-block/the-block-presents-defi-and-the-law-a-round-table-discussion-with-cryptos-leading-lawyers

Weekly Focus

  • CFTC and DOJ Actions Involving BitMEX
  • SEC Settlement with Salt Lending
  • CFTC Action Against PaxForex
  • Summary Judgment Granted in SEC Action Against Kik
  • FinCEN and OFAC Issue Advisories on Ransomware
  • FinCEN Director Blanco Speech at ACAMS AML Conference
  • French Authorities Investigate Use of Virtual Currency to Fund Terrorism


Continue Reading Blockchain Week in Review: Week of October 2, 2020

The staff (“Staff”) of the Division of Trading and Markets of the U.S. Securities and Exchange Commission (SEC) issued a no-action letter (NAL) at the request of the Financial Industry Regulatory Authority (FINRA) on September 25, 2020, which built upon a joint statement (“Joint Statement”) issued by the staffs of the SEC and FINRA in 2019 (please see our prior client update for additional discussion of this 2019 guidance). As part of its guidance, the Joint Statement provided an example of a noncustodial business model for broker-dealers that involved the operation of an alternative trading system (ATS). Upon a request by FINRA on behalf of its broker-dealer members, the NAL provides modified relief for ATSs that meet certain conditions, enabling them to settle digital asset security trades under a slightly modified structure designed to reduce operational and settlement risks.
Continue Reading SEC Staff Provides Relief on the Role of ATSs in the Settlement of Digital Asset Security Trades

Weekly Focus

  • S. Department of Homeland Security Issues Challenge for Development of Trusted User Interface for Digital Wallets
  • Kraken Announces Approval From Wyoming Division of Banking for a Special Purpose Depository Institution Charter
  • CFTC Provides Temporary No-Action Relief to Tassat From SEF Reinstatement Requirements
  • FinCEN Seeks Public Comments on AML Program Requirements
  • CSBS Announces “One Company, One Exam” for Licensed Payment Firms
  • CFTC Files Complaint in Alleged Fraudulent Digital Asset Scheme
  • SEC Brings Charges against T.I. for Violations of Securities Laws
  • SEC Brings a Complaint Against Individuals and Two Companies Relating to Token Offerings
  • FAFT Issues Report on Virtual Assets Red Flag Indicators of Money Laundering and Terrorist Financing
  • Gibraltar Issues Updated Guidance Notes for DLT
  • Report: New Zealand Updates Tax Guidance for Crypto Assets
  • Report: Bahamas Planning to Formally Launch Its CBDC as Soon as October 2020
  • Report: India Considering a New Law Banning Cryptocurrency Trading
  • Nigeria Issues Statement on Digital Assets and Their Classification and Treatment
  • EU Committee Legislative Proposal on the Regulation of Crypto-Assets


Continue Reading Blockchain Week in Review: Week of September 18, 2020

Weekly Focus

  • CFTC approves LedgerX to clear fully-collateralized futures and options.
  • Square launches the Cryptocurrency Open Patent Alliance to spur cryptocurrency adoption and protect against trolls.
  • Mastercard launches testing platform for central bank digital currencies.
  • California’s Consumer Financial Regulator to get a new name and new powers.
  • Blockpit and CryptoTax complete merger.


Continue Reading Blockchain Week in Review: Week of September 11, 2020

Perkins Coie LLP is pleased to bring you this updated Digital Asset SEC Timeline.

The Digital Asset SEC Timeline serves as an interactive compilation of select SEC guidance, enforcement actions, and speeches relating to the application of the federal securities laws to digital assets. Beginning with the release of the DAO Investigative Report in July

Weekly Focus

  • California Appellate Court Upholds Coinbase Summary Judgement
  • California Issues Opinion on Crypto Escrow Services under the Money Transmission Act
  • The Federal Reserve Is Testing a Digital Dollar and Distributed Ledgers
  • New York Updates Cryptocurrency Greenlist
  • SEC Charges Issuer with Fraudulent ICO
  • Wealthsimple Receives Approval for Canadian Regulatory Sandbox
  • Russian Monitoring Service Planning to Create Cryptocurrency Tracking System
  • MicroStrategy Adopts Bitcoin as Treasury Reserve Asset
  • Coinbase Announces Crypto-Backed Loans
  • Grayscale Ethereum Trust Files Registration Statement


Continue Reading Blockchain Week in Review: Week of August 14, 2020