On Wednesday, April 10, the Securities Exchange Commission (SEC) issued a Wells Notice to Uniswap Labs (Uniswap), the creator of the world’s largest decentralized cryptocurrency exchange. Before digging into why the SEC issued a Wells Notice to the U.S.-based software company, it’s important to understand what a Wells Notice is. What is a Wells Notice?…
INTRODUCTION On March 26, 2024, the Commodity Futures Trading Commission (CFTC), brought a civil enforcement action in the U.S. District Court for the Southern District of New York against the group of entities it argues collectively operate as the centralized digital asset exchange KuCoin. The CFTC claims that KuCoin violated the Commodity Exchange Act (CEA)…
The Securities Exchange Commission (“SEC”) is under fire again, this time in Texas. On February 21, emerging Texas-based cryptocurrency exchange LEJILEX and the Crypto Freedom Alliance of Texas (“CFAT”), an industry advocacy group, filed a complaint against the SEC. In their complaint, LEJILEX and CFAT allege that the SEC’s assertion of regulatory authority over nearly…
A recent settlement between Van Eck Associates Corporation (Van Eck) and the Securities and Exchange Commission (SEC) once again underscores the Commission’s focus on transparency in the securities markets. Van Eck agreed to pay a $1.75 million civil penalty to settle charges that it failed to disclose a social media influencer’s role in the promotion…
Table of Contents Introduction to FinCEN and The BSA If you’re a U.S. business dealing with cryptocurrencies on a frequent basis, you’re most likely familiar with the legal concepts “money transmitter” and “money service business” (MSB). If not, you’re potentially opening yourself up to a world of hurt by failing to comply with federal and…
Table of Contents The 2019 Guidance As the cryptocurrency landscape proceeds to blossom, regulatory bodies like the Financial Crimes Enforcement Network, or “FinCEN,” continue to play a crucial role in shaping the industry’s legal framework. For a brief discussion on the history of FinCEN’s entanglement with crypto, see our article Evolution of FinCEN’s Crypto Guidance. …
The Lawsuit Investors in the bankrupt cryptocurrency exchange Voyager Digital are suing the National Basketball Association (NBA), and New Jersey’s oldest law firm, McCarter & English. This emerging legal battle illustrates how even some of the largest and most reputable brands and companies can quickly become ensnared in controversy in an industry marred by a…
Alphabet Soup For over a decade, cryptocurrency has captured the imagination of investors, entrepreneurs, and technologists alike, presenting new opportunities and challenges in the world of finance. And if the financial world has taught us anything, it’s that where consumer interest journeys, regulators are quick to follow. The cryptocurrency craze is no exception. In a…
Bitcoin “Spot” ETF As the future of cryptocurrency in the United States continues to unfold, one of the most eagerly-anticipated developments has been the approval of a Bitcoin “Spot” Exchange-Traded Fund (ETF). This milestone has the potential to reshape the cryptocurrency market and bring new opportunities and challenges to investors, regulators, and the legal community…
On November 15, 2023, the New York Department of Financial Services (NYDFS) issued new standards for virtual currency (coin) listings and delistings. These new regulations apply to BitLicensees and limited-purpose trust companies and include business model considerations for virtual currency entities (VCEs), updated risk assessment expectations for VCEs, new advance notification requirements, and updated definitions.…