State Laws, Regulatory + Enforcement Actions

Join Us: Webinar on Crypto Regulatory + Compliance Considerations for Regulated Entities in Vermont

On Monday, August 6, 2018 Goodwin will host an hour-long webinar on crypto considerations for regulated entities in Vermont. Michael Pieciak, Commissioner of the Vermont Department of Financial Regulation, will join Goodwin Partner Bill Stern and Counsel David Solander for a discussion of relevant topics for investment advisers, broker-dealers and banking institutions….

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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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ICOs in 2018: Increased Regulatory Scrutiny, and Alternatives to Traditional "Utility" Token ICOs

As originally published by Brave New Coin, January 19, 2018. As we transition from 2017 into 2018, there has been an increase in SEC and state regulator activity in the area of Initial Coin Offerings (“ICOs”), as the agencies seek to determine (i) whether certain ICOs constitute a sale of unregistered securities;…

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BitConnect and the Advent of State Securities Enforcement Over ICOs

In the wake of the SEC’s clarifying guidance in Munchee[1] regarding the application of the federal securities laws to initial coin offerings (“ICOs”), there has been increased activity among both federal and state regulators as they seek to deter what they deem to be sales of unregistered securities in the…

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Massachusetts Securities Regulator Announces "Aggressive Policing" of Cryptocurrency Firms

On December 15, 2017, Massachusetts Secretary of State William Galvin announced that his office’s Securities Division (“MSD”) would begin “aggressive policing” of cryptocurrency sales in Massachusetts.  The MSD regulates the offering and sale of securities in Massachusetts.  The MSD can seek a range of civil remedies for violation of the…

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Recent Cases Demonstrate Need for Blockchain

A recent Delaware bill is poised to allow private Delaware corporations “use networks of electronic databases (examples of which are described currently as “distributed ledgers” or a “blockchain”) for the creation and maintenance of corporate records, including the corporation’s stock ledger.”  The bill is a significant step towards the mainstream…

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State Regulation of Distributed Ledger Technology

  While the federal government has taken a variety of different positions in regulating distributed ledger technology, there are several important trends that are emerging in states’ regulation of such technology:   1) States are increasingly scrutinizing digital currencies. States are moving forward with regulating digital currencies, especially with respect…

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California Digital Currency Regulation Is On Again and Then Off Again

California first proposed a licensing framework for digital currency companies in February 2015, though the bill was inactive by September 2015.  Just last week, California legislators introduced a bill that was amended from the original bill in February 2015.  Known as AB 1326, the amended bill proposed the enactment of…

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