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.
In what promises to be the start of a significant legal fight over the government’s ability to regulate initial coin offerings, or ICOs, under the federal securities laws, a Brooklyn man has moved to dismiss criminal securities fraud charges, arguing that digital coins are not “securities” within the meaning of the securities laws.
The SEC Division of Trading and Markets held a panel discussion and workshop at the PLI SEC Speaks program on February 24, 2018, where the implications of blockchain technology for securities markets was a prominent topic of discussion. However, the discussions reveal that the staff is in the early stages of assessing the issues and determining the appropriate application of Exchange Act rules to the new technology.
We examine the SEC's ongoing investigation of domestic Initial Coin Offerings and cryptocurrencies.
The SEC's Division of Corporation Finance discussed its views on token sales and other blockchain issues.
We examine a report issued by Ernst & Young on the state of Initial Coin Offerings (ICOs) and offer our comments.
We examine the early litigation trends emerging in the Blockchain industry.