Cases filed in the past year by the DOJ, CFTC, and SEC represent a new phase in the US government’s digital asset enforcement efforts. By Douglas K. Yatter, Matthew Valenti, and Deric Behar Expanding beyond their earlier focus on registration and compliance violations and retail fraud, enforcement agencies have also begun to address other types of … Continue Reading
The new regime specifies licensing and reporting requirements for a range of activities related to virtual assets in the Emirate of Dubai. By Brian A. Meenagh, Matthew Rodwell, and Ksenia Koroleva On February 7, 2023, the Dubai Virtual Assets Regulation Authority (VARA) adopted the Virtual Assets and Related Activities Regulations 2023 (the Regulations) together with … 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
The regime introduces rules on various crypto tokens, including cryptocurrencies and stablecoins, in the Dubai International Financial Centre. By Brian A. Meenagh, Matthew Rodwell, and Ksenia Koroleva On November 1, 2022, the Dubai Financial Services Authority (DFSA) crypto token regulatory regime came into effect. The rules expand upon the DFSA framework for regulating investment tokens … 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
The latest statements from the government and regulators indicate that Hong Kong is moving forward with enhancing its virtual asset regulatory and legal regime. By Simon Hawkins and Adrian Fong The Hong Kong government and the Securities and Futures Commission (SFC) announced their policy stances and further measures to support the development of virtual assets (VA) in … 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
The comprehensive framework, which spans multiple reports, aims to spur risk mitigation efforts and potentially a US central bank digital currency. By Alan W. Avery, Arthur S. Long, Yvette D. Valdez, Stephen P. Wink, Douglas K. Yatter, Pia Naib, Adam Bruce Fovent, and Deric Behar On September 16, 2022, the White House published a fact … 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
The plan directs the agency to develop a robust regulatory framework to prevent market misconduct, as SEC officials’ public comments keep advancements in technology high on the agenda. By Marlon Q. Paz, Stephen P. Wink, Donald Thompson, and Deric Behar On August 25, 2022, the Securities and Exchange Commission (SEC) published a draft Strategic Plan (the … Continue Reading
Latham lawyers discuss the state of the crypto industry and the challenges for companies. Turbulent market conditions are presenting novel challenges for companies in the cryptocurrency space. What are the factors contributing to the downturn, the implications for companies, and the legal rights and remedies that companies may have? Restructuring & Special Situations Practice partners … 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
The Federal Reserve is taking measured steps to better understand the types of cryptoasset-related activities contemplated by its supervised banking organizations. By Alan W. Avery, Pia Naib, and Deric Behar On August 16, 2022, the Board of Governors of the Federal Reserve System (FRB) issued a Supervision and Regulation Letter outlining its expectations for FRB-supervised … Continue Reading
Bitcoin Association for BSV will release software to facilitate court orders to freeze stolen or lost coins, while some courts recently authorised service proceedings by tokenised airdrop. By Christian F. McDermott, Andrew C. Moyle, and Nara Yoo Earlier this year, in Tulip Trading Ltd (TTL) v. Bitcoin Association for BSV (Bitcoin Association) and others, the … Continue Reading
The latest analysis of “smarter contracts” provides helpful guidance on the opportunities and potential legal and practical risks in adopting these technologies. By Christian F. McDermott, Andrew C. Moyle, and Nara Yoo LawtechUK’s latest analysis of so-called smarter contracts in the UK, set out in its Smarter Contracts Report (the Report), seeks to identify how … Continue Reading
The latest bipartisan crypto bill would give the CFTC new tools and authorities to regulate digital commodities, with a focus on market integrity and consumer protection. By Yvette D. Valdez, Adam Fovent, and Deric Behar On August 3, 2022, a bipartisan group of US senators[1] introduced the Digital Commodities Consumer Protection Act of 2022 (the … Continue Reading
The US Treasury opens a Pandora’s box of legal issues as it targets a decentralized finance protocol used for both licit and illicit means. By Eric Volkman and Deric Behar On August 8, 2022, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced sanctions against decentralized virtual currency “mixer” Tornado Cash (and … Continue Reading
