Treasury officials believe congressional action is “highly appropriate” this year to address the risks that the latest financial stability report underscores. By Alan W. Avery, Pia Naib, and Deric Behar On May 9, 2022, the Board of Governors of the Federal Reserve System (FRB) published its semi-annual Financial Stability Report (Report). The Report, which covers … Continue Reading
The Executive Order aims to strengthen consumer protection and cultivate innovation in digital assets and related financial products and services. By Christopher D. Frey, Scott D. Joiner, Barrie VanBrackle, Katherine A. Sawyer, and Scott Kanchuger* On May 4, 2022, California Governor Gavin Newsom issued an Executive Order (California Order) calling upon California state agencies to … Continue Reading
A complaint filed in federal court will test the boundaries of protection from liability for individuals behind decentralized autonomous organizations. By Stephen P. Wink, Nima H. Mohebbi, Adam Zuckerman, and Deric Behar On May 2, 2022, a putative class action was filed in the US District Court for the Southern District of California against the bZx protocol … Continue Reading
Assertive regulators are bringing greater clarity and new challenges as they step up oversight of fintech innovation. By Stuart Davis, Tom D. Evans, Nicola Higgs, Christian F. McDermott, David J. Walker, Brett Carr, Catherine Campbell, and Charlotte Collins As the fast-growing fintech industry thrives, the sector has begun to attract greater regulatory scrutiny. We expect new legal and regulatory focus and oversight of … Continue Reading
The promise of faster and cheaper remittances may accelerate crypto adoption in many emerging markets, including those that have not historically utilized credit and debit payments, notably Latin America. By Gianluca Bacchiocchi, Barrie VanBrackle, Nima H. Mohebbi, and Deric Behar One of the most promising benefits of digital assets is the ability to move value … Continue Reading
The new law establishes the Dubai Virtual Assets Regulatory Authority and identifies activities to be regulated, such as operating virtual asset platforms. By Andrew Moyle, Ksenia Koroleva, and Matthew Rodwell On March 11, 2022, Dubai Law No. 4 of 2022 on the Regulation of Virtual Assets in the Emirate of Dubai (Virtual Assets Law) was … Continue Reading
The order directs federal agencies to focus on six priority areas within the digital asset sector and potential development of a US CBDC. By Alan W. Avery, Yvette D. Valdez, Stephen P. Wink, Pia Naib, Adam Bruce Fovent, and Deric Behar On March 9, 2022, President Biden issued an Executive Order on Ensuring Responsible Development … Continue Reading
The amended definition could provide a new means for the SEC to regulate crypto platforms. By Stephen P. Wink, Marlon Q. Paz, Naim Culhaci, Ian Irlander, and Deric Behar We previously published a blog post on the set of proposed amendments (Proposal) issued on January 26, 2022, by the Securities and Exchange Commission (SEC) regarding … Continue Reading
The proposal would require certain systems and platforms currently not subject to any registration requirements to register as broker-dealers and ATSs. By Stephen P. Wink, Marlon Q. Paz, Naim Culhaci, and Deric Behar On January 26, 2022, the Securities and Exchange Commission (SEC) issued a set of proposed amendments (Proposal) regarding the regulation of alternative … Continue Reading
Regulators released comprehensive guidance to banks, intermediaries, and insurers on virtual asset-related activities. By Simon Hawkins and Adrian Fong On 28 January 2022, Hong Kong’s principal financial services regulators issued much-anticipated guidance to banks, securities firms, and insurers looking to undertake activities related to virtual assets (VAs). In particular: The Hong Kong Monetary Authority (HKMA) issued … Continue Reading
In a long-awaited paper, the FRB continues its exploratory approach and emphasizes the need for congressional support. By Alan W. Avery, Pia Naib, and Deric Behar On January 20, 2022, the Board of Governors of the Federal Reserve System (FRB) published its long-awaited discussion paper (the Paper) on the potential benefits and risks of issuing … Continue Reading
The SEC’s reliance on a nebulous US Supreme Court decision raises important questions for the future of decentralized finance. By Benjamin Naftalis, Douglas K. Yatter, and Peter E. Davis Reves v. Ernst & Young,[1] a 30-year-old US Supreme Court decision on farmers’ co-ops, is garnering attention in the Web3[2] world, specifically in the context of … Continue Reading
Popular and institutional interest in digital assets, decentralized applications, NFTs, and blockchain technology skyrocketed, and regulators sprinted to catch up. By Todd Beauchamp, Yvette D. Valdez, Stephen P. Wink , Adam Bruce Fovent, Adam Zuckerman, and Deric Behar For the digital asset markets, 2021 was a banner year. Among the milestones: • Bitcoin prices hit … Continue Reading
The HKMA’s discussion paper seeks feedback on its proposed regulatory approach to stablecoins, with responses due by 31 March 2022. By Simon Hawkins and Adrian Fong On 12 January 2022, the Hong Kong Monetary Authority (HKMA), Hong Kong’s principal regulator for banks and payment systems, published a discussion paper seeking the public’s views on its … Continue Reading
HM Treasury has confirmed that it will bring certain unregulated cryptoassets within scope of the financial promotions regime. By Stuart Davis, Rob Moulton, and Charlotte Collins On 18 January 2022, the UK government confirmed its intention to bring the promotion of certain cryptoassets into scope of regulation. HM Treasury has been considering for some time … Continue Reading
The guidelines set out the MAS’ expectation that digital payment token service providers should not promote their services to the general public in Singapore. By Simon Hawkins, Farhana Sharmeen, and Tan Gen Huong On 17 January 2022, the Monetary Authority of Singapore (the MAS) issued new guidelines (the Guidelines) setting out restrictions on the promotion … Continue Reading
The industry will have two years to learn the new requirements and develop systems to ensure compliance. By Elena Romanova, Stephen P. Wink, Adam Zuckerman, and Deric Behar On November 15, 2021, President Biden signed the US$1.2 trillion Infrastructure Investment and Jobs Act into law (the Law). Two provisions of the Law could have a … Continue Reading
The report addresses the market risks and regulatory challenges presented by stablecoins and urges Congress to act quickly. By Alan W. Avery, Yvette D. Valdez, Stephen P. Wink, Pia Naib, and Deric Behar On November 1, 2021, the President’s Working Group on Financial Markets (PWG) in conjunction with the Federal Deposit Insurance Corporation (FDIC) and … Continue Reading
The DOJ’s National Cryptocurrency Enforcement Team and Treasury’s OFAC are setting their sights on cryptocurrency use in cybercrimes. By Benjamin A. Naftalis, Eric S. Volkman, Douglas K. Yatter, Nima H. Mohebbi, Jessie R. Michelin, and Deric Behar The US Department of Justice (DOJ) is sharpening its focus on combatting cryptocurrency use in criminal activity. On … Continue Reading
The global central bank cooperative body envisions stablecoins within the context of international standards for payment, clearing, and settlement systems. By Alan W. Avery, Stuart Davis, Simon Hawkins, Stephen P. Wink, Pia Naib, and Deric Behar Among the different types of digital assets, global authorities seem most focused on stablecoins. This concern is the result … Continue Reading
The Clarity for Digital Tokens Act of 2021 would give token issuers the guardrails they need to innovate with far less regulatory anxiety. By Stephen P. Wink and Deric Behar US Securities and Exchange Commission (SEC) Commissioner Hester Peirce has always been something of a maverick. She has been a lone dissenting voice on the … Continue Reading
An ambitious proposal could bring digital assets into the mainstream regulatory fold. By Yvette D. Valdez, Stephen P. Wink, Adam Bruce Fovent, Adam Zuckerman, and Deric Behar During an eventful summer for the digital assets industry, it may have been easy to miss US Representative Don Beyer’s introduction of the Digital Asset Market Structure and … Continue Reading
NFT creators should craft strategies to avoid minting or auctioning NFTs that use the likeness of an individual without their consent. By Ghaith Mahmood, Nima H. Mohebbi, and Tara McCortney As non-fungible tokens (NFTs) increase in popularity, the so-called common law “right of publicity” may create additional legal risks for NFT minters. The common law … Continue Reading
Gary Gensler asserts the SEC’s broad powers over digital assets, and puts consumer protection at the forefront. By Stephen P. Wink, Adam Zuckerman, and Deric Behar On August 3, 2021, Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), gave a speech on the digital asset industry. The speech offered some indication of … Continue Reading
