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.

We examine the SEC's ongoing investigation of domestic Initial Coin Offerings and cryptocurrencies.

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.

The SEC's Division of Corporation Finance discussed its views on token sales and other blockchain issues.

Recently, the SEC has used its authority in Exchange Act Section 12(k) to suspend trading in the stock of four issuers that reflects the SEC’s concern about the public market for an issuer’s stock influenced by potentially unfounded claims about the use of, or association with, blockchain technology and cryptocurrencies.  A trading suspension can have a significant impact on the subsequent market for the issuer's stock.

We examine the early litigation trends emerging in the Blockchain industry.