A new program addresses innovative banking activities such as bank-fintech partnerships and digital assets while reinforcing guardrails around stablecoin activity. By Arthur S. Long, Parag Patel, Pia Naib, Ja Hyeon Park, and Deric Behar On August 8, 2023, the Board of Governors of the Federal Reserve System (FRB) issued guidance to the banking organizations that … Continue Reading
A bifurcated decision in a highly anticipated digital assets enforcement action may not provide the clarity that market participants want or need. By Jack Barber, Jenny Cieplak, Benjamin Naftalis, John Sikora, Stephen P. Wink, Douglas K. Yatter, Luca Marquard, Adam Zuckerman, and Deric Behar On July 13, 2023, Judge Analisa Torres of the US District Court for … Continue Reading
MAS has published new requirements for DPT service providers and a consultation paper on additional regulations and prohibitions against unfair trading practices. By Simon Hawkins, Farhana Sharmeen, Adrian Fong, and Tan Gen Huong On 3 July 2023, the Monetary Authority of Singapore (MAS), Singapore’s primary regulator for banks and payment services, announced new custody and … Continue Reading
The regulatory perimeter continues to expand as the Securities and Futures Commission introduces a comprehensive regime to regulate virtual asset service providers. By Simon Hawkins and Adrian Fong In December 2022, Hong Kong passed the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Bill 2022 (Amendment Bill), which will establish a new licensing regime and statutory framework … 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
Congress will be “starting from scratch” in attempting to establish a regulatory framework for stablecoins — an issue that many believe is the top digital asset legislative priority. By Arthur S. Long, Parag Patel, Yvette Valdez, Pia Naib, and Deric Behar On April 15, 2023, the US House Financial Services Committee (Committee) published a draft … Continue Reading
This is the first decision by the Hong Kong Court on whether clients of a crypto exchange have proprietary claims to cryptocurrencies held on the platform. It confirms that cryptocurrency constitutes property under Hong Kong law. By Dominic Geiser, Simon Hawkins, Howard K. H. Lam, Adrian Hei-Yin Fong, Flora F. W. Innes, and Tsun Ming … Continue Reading
The DSA has a broad scope and regulates many aspects of digital services, including in the fintech space. By Gail E. Crawford, Jean-Luc Juhan, Susan Kempe-Mueller, Deborah J. Kirk, Lars Kjølbye, Elisabetta Righini, Sven B. Völcker, Ben Leigh, Victoria Wan, and Amy Smyth As a key part of the EU’s digital regulation strategy, the Digital … Continue Reading
A legislative initiative in Illinois would establish licensing and consumer protection requirements for digital asset businesses serving consumers in the state. By Jack Barber, Parag Patel, Arthur S. Long, John J. Sikora, Stephen P. Wink, Pia Naib, and Deric Behar On February 21, 2023, the Illinois Department of Financial and Professional Regulation (IDFPR) announced the Consumer … 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 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
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 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
A new Article 12 and amendments to Article 9 regarding “controllable electronic records” would govern transactions and security interests in digital assets. By Lawrence Safran and Deric Behar On July 13, 2022, the Uniform Law Commission (in partnership with the American Law Institute) approved amendments intended to modernize the Uniform Commercial Code (UCC). The amendments … Continue Reading
The RFIA could ease tax compliance burdens for parties transacting in digital assets and defer or eliminate tax on some transactions. By Jiyeon Lee-Lim, Elena Romanova, Ted Gkoo, and Jacob Nagelberg Latham & Watkins presents a blog series on the Responsible Financial Innovation Act, which was introduced in the US Senate on June 10, 2022, to create a … Continue Reading
The RFIA could make it easier for fintechs dealing in digital assets and stablecoins to access Federal Reserve bank services. By Alan W. Avery, Pia Naib, and Deric Behar Latham & Watkins presents a blog series on the Responsible Financial Innovation Act, which was introduced in the US Senate on June 10, 2022, to create a framework for digital assets, … Continue Reading
The CFTC would take center stage in the regulation of spot digital asset markets under Title IV of the RFIA. By Yvette D. Valdez, Adam Bruce Fovent, and Emily Viola Latham & Watkins presents a blog series on the Responsible Financial Innovation Act, which was introduced in the US Senate on June 10, 2022, to create a … Continue Reading
