SEC Commissioner Peirce has revived and refreshed her proposed three-year safe harbor for qualifying token projects, but some unresolved ambiguities remain. By Miles P. Jennings, Stephen P. Wink, Naim Culhaci, and Deric Behar US Securities and Exchange Commission (SEC) Commissioner Hester Peirce, a longtime and vocal advocate for innovation in financial services, has not shied … Continue Reading
As the market for NFTs heats up, market participants should remain mindful of the regulatory implications of complex schemes. By Stephen P. Wink, Miles P. Jennings, Shaun Musuka, and Deric Behar As the current crypto boom has progressed, it seemed Decentralized Finance (DeFi) had cemented its position as the dominant new narrative of this cycle. … Continue Reading
In a new publication, ISDA explores the benefits of digitization and blockchain solutions for global foreign exchange derivatives markets. By Yvette D. Valdez, Adam Bruce Fovent, and Deric Behar As blockchain and distributed ledger technology (DLT) use cases continue to grow across the broad spectrum of financial markets, the International Swaps and Derivatives Association, Inc. … Continue Reading
A thorough dispute resolution model can help market participants navigate inevitable disputes in the blockchain network and minimize costly litigation. By Jenny Cieplak Some of the biggest challenges in scaling blockchain solutions revolve around setting up an effective governance framework, particularly a component to manage the processes by which disputes among parties are properly … Continue Reading
US Department of Justice’s sprawling report reveals regulatory enforcement priorities for cryptocurrencies and highlights multi-agency cooperation. By Susan Engel, Miles Jennings, Benjamin Naftalis, Yvette Valdez, Eric Volkman, Stephen Wink, Douglas K. Yatter, and Deric Behar On October 8, 2020, the US Attorney General’s Cyber-Digital Task Force of the Department of Justice (DOJ) published an extensive … Continue Reading
A collaborative project led by the Global Blockchain Business Council represents an unprecedented effort to analyze the technical and regulatory blockchain landscape. By Stuart Davis, Axel Schiemann, Farhana Sharmeen, Simon Hawkins, Max von Cube, Kenneth Y.F. Hui, and Gen Huong Tan On October 14, 2020, the Global Blockchain Business Council (GBBC) and the World Economic … Continue Reading
The milestone fund structure portends a reduced role for broker-dealers, who may be sidelined by innovators unwilling to wait for regulators. By Stephen P. Wink and Deric Behar On July 6, 2020, asset management firm Arca announced that the US Securities and Exchange Commission (SEC) granted it approval under the Investment Company Act of 1940 … Continue Reading
Latham fintech lawyers and key industry leaders explore the progress and potential of CBDCs, use cases for stablecoins, and the global regulatory landscape. Many central banks around the world are currently considering central bank digital currency (CBDC). According to the Bank of International Settlements’ recent survey of 66 central banks, 80% of surveyed central banks … Continue Reading
Latham fintech partners explore tokenization and distributed business models with guest speakers from Energy Web Foundation, ConsenSys, and The LAO. Tokenization of assets, as well as the innovation of blockchain-based distributed business models, have the potential to unlock asset liquidity, create more efficient, trustless and transparent processes, and reshape systems and entire industries by minimizing … Continue Reading
Latham Fintech partner Jenny Cieplak discussed consortium governance on a panel hosted by WEF at the Consensus: Distributed Conference. Jenny Cieplak, a member of Latham & Watkins’ Fintech Industry Group, recently discussed blockchain consortia governance issues as part of a panel hosted by the World Economic Forum (WEF) at the Consensus: Distributed conference. A replay … Continue Reading
MAS confirms regulatory approach for derivative contracts on payment tokens. By Farhana Sharmeen and Marc Jia Renn Tan On 15 May 2020, the Monetary Authority of Singapore (the MAS) issued its response to feedback about its proposed regulatory approach for derivative contracts that reference payment tokens as underlying assets (Payment Token Derivatives), confirming that it … Continue Reading
The report encourages the G20 to consider a broad set of supervisory principles when evaluating global stablecoin arrangements. By Todd Beauchamp, Stuart Davis, Christian F. McDermott, Yvette D. Valdez, Stephen P. Wink, Simon Hawkins, and Deric Behar On April 14, 2020, the G20’s Financial Stability Board (FSB) published a consultation on the regulation, supervision, and … Continue Reading
The resource aims to help businesses create more resilient supply chains and trusted data by responsibly deploying blockchain technology. By Stuart Davis, Fiona Maclean, Andrew Moyle, Jenny Cieplak, Mitch Rabinowitz and Masha Smith The World Economic Forum has launched a new, first-of-its-kind resource — Redesigning Trust: Blockchain Deployment Toolkit (Toolkit) — to help organizations responsibly … Continue Reading
SEC’s motion for a preliminary injunction is granted, prohibiting delivery of Telegram tokens to purchasers. By Stephen P. Wink, Shaun Musuka, Carolina Bernal and Deric Behar On March 24, the Court in the Southern District of New York sided with the SEC and granted an injunction prohibiting Telegram Group Inc. and TON Issuer Inc. (together, Telegram) from delivering … Continue Reading
It was a year filled with tantalizing tidbits and many loose ends. By Stephen P. Wink, Cameron R. Kates, Shaun Musuka, and Deric Behar 2019 marked the 10th year since blockchain technology was released into the wild by its still unknown inventor, Satoshi Nakamoto, who mined the first bitcoin block in January 2009. In the … Continue Reading
The US agency has used a no-action letter to enable a sandbox-like approach to blockchain-based trade settlements. By Stephen P. Wink, Cameron R. Kates, Shaun Musuka, and Deric Behar In what may be the first regulator-approved application of blockchain technology for the settlement of US equities trades, the Division of Trading and Markets of the … Continue Reading
As the agency pursues and prevents offerings of tokens it deems unregistered securities, further issues emerge. By John J. Sikora Jr., Stephen P. Wink, Douglas K. Yatter, Cameron R. Kates, Shaun Musuka, and Deric Behar The recent wave of US Securities and Exchange Commission (SEC) enforcement actions relating to initial coin offerings (ICOs) continues with … Continue Reading
Latham FinTech partners discuss the evolving stablecoin landscape on the New Territories Podcast. By Christian F. McDermott, Yvette D. Valdez, and Stephen P. Wink New York partners Yvette Valdez and Stephen Wink and London partner Christian McDermott recently discussed the evolving stablecoin landscape on new episodes of The Brooklyn Project’s New Territories Podcast. The partners, … Continue Reading
Latham & Watkins provides an in-depth look at the intersection of CFTC and SEC regulatory jurisdiction in the crypto context. By David L. Concannon, Yvette D. Valdez, and Stephen P. Wink, with Paul M. Dudek and Miles P. Jennings With the rapid growth in the development of blockchain technology, virtual currencies, and token sales (sometimes … Continue Reading
HMRC confirms that cryptoassets are not considered to be money or currency for tax purposes. By Karl Mah and Amy Watkins On 1 November 2019, HM Revenue & Customs (HMRC) issued a policy paper on the taxation of cryptoassets for businesses and companies. This follows guidance issued by HMRC in December 2018 for individuals holding … Continue Reading
Global monetary authorities and financial regulators have responded forcefully to the advent of privately developed global stablecoins. By Todd Beauchamp, David L. Concannon, Stephen P. Wink, Simon Hawkins, Stuart Davis, and Deric Behar A new report highlights the risks of global stablecoins and enumerates the legal, regulatory, and oversight hurdles a global stablecoin must clear … Continue Reading
In line with its previous guidance, FINRA has granted broker-dealer (but not custodian) status to a digital asset platform. By Stephen P. Wink, Cameron R. Kates, Shaun Musuka, and Deric Behar In a follow-up to the July 2019 SEC and FINRA joint staff statement (Joint Statement) clarifying the regulators’ position on the custody of digital … Continue Reading
Latham & Watkins lawyers provide an in-depth look at recent issues impacting the use of token presale agreements. By Stephen P. Wink, Miles P. Jennings, and Shaun Musuka Token presale agreements are a popular type of financing instrument among startups in the blockchain space. In this article, originally published by Bloomberg Law, Latham & Watkins … Continue Reading
By Brian Meenagh, and Khaled Alhuneidi. In June 2018, the Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority (FSRA) unveiled a dedicated cryptoasset regulatory framework by way of various amendments to the FSRA’s core regulations – the Financial Services and Markets Regulation (FSMR) as well as supplementary guidance thereto. In May 2019, the FSRA … Continue Reading
