Blockchain technology utilizes a distributed digital ledger to record and track information, and can be leveraged to gain transparency and certainty in transactions ranging from cryptocurrency to supply chain tracking. This blog provides information on the legal developments surrounding implementation of blockchain technology, with an initial focus on the financial services sector.
Deep learning, a subset of machine learning, has begun to migrate from hedge and prop trading firms to some large bulge bracket firms who are looking to enhance their alpha returns from trading.
In a setback for the Securities and Exchange Commission, a California federal judge has denied the SEC’s motion for a preliminary injunction against a token issuer and its founder. In SEC v. Blockvest LLC, the SEC brought an enforcement action against Blockvest and Buddy Ringgold III alleging that a private sale and subsequent presale of Blockvest tokens (“BLVs”) were illegal sales of unregistered securities.
Recent SEC enforcement action found that a digital token operated as an unregistered securities exchange. In a settlement, the token's founder agreed to disgorgement of $313,000 and a penalty of $75,000.
The SEC has launched a portal on its website to act as a clearinghouse for fintech related information.
On September 27, 2018, the Commodity Futures Trading Commission sued 1Pool Ltd. and Patrick Brunner for offering illegal leveraged, off-exchange commodity transactions to retail customers in the United States.
On September 21, 2018, Congressman Tom Emmer (R-MN), co-chair of the Congressional Blockchain Caucus, announced his plans to introduce three pieces of legislation designed to support the use and development of blockchain technology in the United States.