On Apr. 3, 2019, the SEC Division of Corporation Finance (“Division”) issued a no-action letter to TurnKey Jet, Inc. (“TKJ”) in response to TKJ’s incoming letter dated Apr. 2, 2019. At the same time, the Division released a paper entitled “Framework for ‘Investment Contract’ Analysis of Digital Assets” (see accompanying…
On April 3, 2019, the Securities and Exchange Commission (“SEC”) released the “Framework for ‘Investment Contract’ Analysis of Digital Assets” (the “Framework”). The Framework—published by the SEC’s Strategic Hub for Innovation and Financial Technology (“FinHub”) —is the most comprehensive guidance the SEC has provided to date with respect to a…
On March 31, 2019, the U. S. District Court for the Southern District of New York denied a motion to dismiss a putative class action complaint alleging that ATBCOIN LLC (“ATBCOIN”) and its co-founders and officers (Edward Ng and Herbert W. Hoover) violated Sections 12(a) and 15 of the Securities…
Basis, one of the most well-funded crypto-startups, had plans to create an algorithmic central bank that aimed to create a price-stable cryptocurrency within a decentralized monetary system. In its April 2018 fundraising efforts, Basis had secured $133 million in funding from large institutional investors. However, citing regulatory constraints, Basis announced…
On November 16, 2018, the Divisions of Corporation Finance, Investment Management, and Trading and Markets of the U.S. Securities and Exchange Commission (“SEC”) issued a Statement on Digital Asset Securities Issuance and Trading, summarizing recent SEC enforcement actions “involving the intersection of long-standing applications of our federal securities laws and…
On November 8, 2018, the U.S. Securities and Exchange Commission (“SEC”) announced that it settled charges against Zachary Coburn, the founder of blockchain token trading platform EtherDelta, over operating an unregistered securities exchange.[1] The SEC’s cease-and-desist order to Coburn describes EtherDelta’s website as a user-friendly interface resembling online securities trading…
As new technologies reshape the way business is conducted, the world becomes more interconnected. The advent of decentralized blockchain technology has created new opportunities to take advantage of the borderless nature of this technology. As with many new technologies, there has been a rush to obtain patent protection for innovations…
The National Law Journal named partners Grant Fondo and Mitzi Chang to its 2018 Cryptocurrency, Blockchain and Fintech Trailblazers list. This inaugural award recognizes lawyers who are making great strides as finance and technology grow more and more entwined. Please click here to read The National Law Journal’s profile on Fondo and Chang.
This past week was a busy one for state securities regulators, the CFTC and the SEC as they continue their focus on rooting out fraud from the digital currency space and crypto- and blockchain-based ventures. Noteworthy developments included (1) the North American Securities Administrators Association (NASAA) announcing a “cryptosweep” –…
Goodwin is a proud sponsor of Consensus 2018, taking place May 14-16, 2018 at the Hilton Midtown in New York. For more information on the conference, visit CoinDesk’s show website. We will have a booth setup in the exhibit hall for the duration of the conference and members from our team will…