Search Results: test Regulatory Guidance

SEC Commissioner Peirce Proposes Safe Harbor for Blockchain Developers

Speaking at the International Blockchain Congress in Chicago on February 6, 2020, SEC Commissioner Hester Peirce proposed a safe harbor from U.S. securities laws so that developers of blockchain protocols could offer and sell tokens for the purpose of developing functioning token networks and creating liquidity for users. Commissioner Peirce’s…

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SEC Deems Digital-Currency Investment Vehicle a Reporting Company

On January 21, 2020, Grayscale Bitcoin Trust (the “Trust”) became the first digital currency investment vehicle to attain the status of an SEC reporting company. The Trust’s sponsor, Grayscale Investments, LLC (“Grayscale”), is a digital currency asset manager that offers cryptocurrency investment products that provide exposure to Bitcoin and Ethereum, among…

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SEC Commissioner Hester Pierce Worries Agency's Lag in Directing Token Industry Will Stifle Growth; FinCEN Issues Guidance on Virtual Currencies

On May 9, 2019, Commissioner Hester Peirce of the U.S. Securities and Exchange Commission (“SEC”) expressed concern that the SEC is moving too slowly in providing meaningful guidance for the digital token industry. Commissioner Peirce acknowledged that the SEC has provided some direction to date by: (1) issuing the DAO…

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SEC’s TurnKey Jet No-Action Letter Indicates Baseline for Utility Tokens

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…

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The SEC Releases New “Framework” to Analyze Digital Assets under Securities Laws

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…

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A Second Federal Court Decides Virtual Currencies are Commodities Subject to Federal Regulation

On September 26, 2018, a federal judge in Massachusetts agreed with the Commodity Futures Trading Commission’s (“CFTC”) view that virtual currencies are commodities under the Commodity Exchange Act (“CEA”) and subject to federal regulation.  See CFTC v. My Big Coin Pay, Inc., No. CV 18-10077-RWZ, 2018 WL 4621727 (D. Mass….

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OCC Announces it Will Accept Applications for Fintech Charter; Treasury Department Releases Fintech Report

The OCC announced on Tuesday, July 31, that it would begin accepting applications for special purpose national bank (SPNB) charters from Fintech companies engaged in the business of banking. The agency released a Policy Statement and a Supplement to its Licensing Manual addressing how it would consider applications from Fintech companies seeking…

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DOJ Announces Establishment of Task Force on Market Integrity and Consumer Fraud; SEC Chairman Highlights Actions Involving ICOs

Earlier today, Deputy Attorney General Rod J. Rosenstein announced that the President issued an executive order establishing a new Task Force on Market Integrity and Consumer Fraud, comprised of a number of divisions of the Department of Justice (DOJ), including the FBI and various United States Attorney’s Offices as designated…

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State and Federal Regulators Coordinate Efforts to Combat Crypto Fraud

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” –…

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New York Department Of Financial Services Issues Crypto Guidance; Outlines Enhanced Reporting Requirements

On February 7, 2018, the New York State Department of Financial Services (NY DFS) issued guidance to all virtual currency businesses that maintain a “BitLicense” or that are chartered as a limited purpose trust company under New York Banking Law (collectively, VC Entities), including those that maintain a money transmitter…

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