An appeals court panel rules that the SEC rejection of a proposed spot bitcoin ETP was arbitrary and capricious, opening the door for the potential launch of numerous ETPs in the near future. By Jack Barber, Aaron Gilbride, Marlon Paz, Stephen P. Wink, and Deric Behar On August 29, 2023, a three-judge panel on the District of … Continue Reading
A federal court’s dismissal of claims against a decentralized cryptocurrency platform and its investors for the actions of scam token issuers is a case of first impression with wider significance. By Jenny Cieplak, Benjamin A. Naftalis, Stephen P. Wink, Douglas K. Yatter, Gregory Mortenson, and Deric Behar On August 29, 2023, the US District Court … Continue Reading
In its first enforcement action involving NFTs, the SEC focused on issuer marketing that promised outsized returns on investment and platform building. By Ghaith Mahmood, Nima H. Mohebbi, Stephen P. Wink, Douglas K. Yatter, Adam Zuckerman, and Deric Behar On August 28, 2023, the Securities and Exchange Commission (SEC) issued a cease-and-desist order (the Order) … Continue Reading
The viability of DAO structures draws attention after a judge declares that a decentralized autonomous organization is a “person” under the law. By Nima H. Mohebbi, Yvette D. Valdez, Stephen P. Wink, Douglas K. Yatter, Peter Trombly*, Adam Zuckerman, and Deric Behar On June 8, 2023, the US District Court for the Northern District of California granted the … Continue Reading
The proposed bill sets forth a comprehensive framework for the digital asset ecosystem by bridging regulatory gaps, promoting innovation, and protecting consumers. By Jenny Cieplak, Marlon Q. Paz, Yvette D. Valdez, Stephen P. Wink, Adam Zuckerman, and Deric Behar On June 2, 2023, Patrick McHenry, Chairman of the House Financial Services Committee, and Glenn Thompson, … Continue Reading
By Stephen Wink and Adam Zuckerman Decentralization is the key innovation enabled by blockchain technology, and can have significant technological, economic, and legal implications for web3 companies and protocols. Decentralization remains hard to grasp and define despite its importance. In the web3 spirit of collaboration and open source, Latham has partnered with a16z Crypto to … Continue Reading
The CRPTO Act is intended to increase transparency and consumer protections, and reduce conflicts of interest, through heightened disclosures and penalties. By Jenny Cieplak, Arthur S. Long, Yvette Valdez, Stephen P. Wink, and Deric Behar On May 5, 2023, New York Attorney General (NYAG) Letitia James introduced a bill that, if passed, would increase New … Continue Reading
In a major Web3 trademark infringement case, NFT creators prevail over those with a bad-faith intent to profit. By Stephen P. Wink, Tiffany M. Ikeda, Adam Zuckerman, and Deric Behar On April 21, 2023, Yuga Labs, the original creators of the Bored Ape Yacht Club (BAYC) non-fungible token (NFT) collection, successfully moved for summary judgment … Continue Reading
Whereas the original proposal did not directly discuss digital assets, the reopening release is mainly focused on digital asset platforms. By Stephen P. Wink, Marlon Q. Paz, Naim Culhaci, and Deric Behar On April 14, 2023, the Securities and Exchange Commission (SEC) issued a release amending portions of its earlier proposal to reinterpret the definition … Continue Reading
As content-based NFT projects seek to provide NFT owners with value beyond being scarce collectibles, they should consider whether to grant owners rights to commercialize the content underlying the NFTs. By Ghaith Mahmood, Heather Lui, and Justin Tzeng As the ecosystem for non-fungible tokens (NFTs) continues to mature, the discourse around content-based NFTs[1] has increasingly … Continue Reading
The bipartisan bill would provide a federal safe harbor for non-custodial blockchain service providers from state money transmission and digital asset licensing laws. By Arthur S. Long, Parag Patel, Yvette D. Valdez, Stephen P. Wink, Pia Naib, and Deric Behar On March 23, 2023, US House of Representatives Majority Whip Tom Emmer (R) and Representative Darren Soto … Continue Reading
By authorizing the issuance of a stable token, “Blockchain Valley” leads the way in state digital asset adoption and integration. By Jenny Cieplak, Arthur S. Long, Yvette Valdez, Stephen P. Wink, Adam Zuckerman, and Deric Behar For the last few years, Wyoming has been a leader among US states at the intersection of digital asset innovation, … Continue Reading
The Definitions aim to support the safe and efficient development of the digital asset derivatives market through consistent contractual standards. By Yvette D. Valdez, Thomas Vogel, Naffie Lamin, Tiiu Lemsalu, and Deric Behar On January 26, 2023, the International Swaps and Derivatives Association, Inc. (ISDA) published version 1.0 of the long-awaited ISDA Digital Asset Derivatives Definitions (the … Continue Reading
Custodia Bank was denied Federal Reserve membership, while certain crypto principal activities are deemed presumptively not appropriate for member banks. By Arthur S. Long, Pia Naib, and Deric Behar On January 27, 2023, the Board of Governors of the Federal Reserve System (Federal Reserve) took two actions, clarifying that it considers many cryptocurrency activities to be … Continue Reading
The Guidance clarifies the regulator’s expectations on safekeeping customer digital assets, and the disclosures that must accompany such arrangements. By Arthur S. Long, Parag Patel, Marlon Q. Paz, Yvette D. Valdez, Barrie VanBrackle, Pia Naib, Donald Thompson, and Deric Behar On January 23, 2023, the New York Department of Financial Services (NYDFS) published Guidance on Custodial … Continue Reading
The Financial Services Committee seeks to bring order to an industry many say has suffered from lack of proper rulemaking. By Stephen P. Wink, Nima H. Mohebbi, and Deric Behar On January 12, 2023, incoming House Financial Services Committee Chair Patrick McHenry established a new subcommittee on digital assets, financial technology, and inclusion. Rep. French Hill will … Continue Reading
While a conclusion to the much-hyped case may be approaching, market participants should be wary of doomsday prognostications. By Stephen P. Wink, Douglas K. Yatter, John Sikora, Benjamin Naftalis, William Baker, Jack Barber, Natalie DeLave, and Deric Behar As a new year begins, the digital assets industry is still enduring a deep and widespread crypto winter. When … Continue Reading
Banking organizations should ensure appropriate risk management, but regulators are skeptical of certain crypto activities as principal. By Arthur S. Long, Pia Naib, and Deric Behar On January 3, 2023, the Board of Governors of the Federal Reserve System (Federal Reserve), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency … Continue Reading
Digital asset activities of licensed institutions must be approved and will be assessed for potential safety and soundness risks. By Arthur S. Long, Pia Naib, and Deric Behar On December 15, 2022, the New York State Department of Financial Services (NYDFS) issued final guidance to covered institutions engaging in (or seeking to engage in) virtual currency-related … Continue Reading
In granting the SEC’s motion for summary judgment, a federal court ruled that sales of LBC tokens were securities transactions. By Stephen P. Wink, Douglas K. Yatter, Jack McNeily, Benjamin Naftalis, Adam Zuckerman, and Deric Behar On November 7, 2022, the Securities and Exchange Commission (SEC) prevailed in a motion for summary judgment against blockchain-based streaming and … Continue Reading
NFT creators and consumers should evaluate the legal and commercial considerations of NFTs that are linked to copyright work. By Andrew Moyle, Christian McDermott, and Avinash Balendran The Law Commission of England and Wales (the Commission) is a statutory independent body that keeps the law of England and Wales under review and recommends reform where … Continue Reading
Unpacking three key competition issues for digital asset innovators and investors: M&A, interlocking directorates, and interoperability. By Kelly Fayne, Anna Rathbun, and Evan Omi In a sea of regulatory hurdles and issues, antitrust and competition laws may be low on the list of concerns of digital asset innovators and investors. But competition in the digital … Continue Reading
Mobile and desktop reference tool defines nearly 600 industry terms. Latham & Watkins has published the second edition of The Book of Jargon® — Blockchain, Crypto & Web3, a comprehensive digital glossary developed for the business, academic, and legal communities. The resource renders the often complex vocabulary, acronyms, and slang of the blockchain, cryptocurrency, and … Continue Reading
Ethereum’s transition to proof of stake presents opportunities and pitfalls for certain digital assets and tokens built on the network. By Jenny Cieplak, Ghaith Mahmood, Yvette D. Valdez, Stephen P. Wink, Adam Fovent, and Justin Tzeng After years of development, the Ethereum blockchain appears poised to make its much-anticipated transition from a proof-of-work (PoW) consensus … Continue Reading
