For anyone invested in cryptocurrencies or considering a capital raise funded through an Initial Coin Offering (ICO), it would be difficult to imagine two more diametrically different years than 2017 and 2018. As 2018 draws to a close, it is worth reflecting for a moment on all that has happened over the past two years. Bitcoin/Cryptocurrency In January 2017, anyone who had even heard of Bitcoin could purchase one for just under $1,000. The price…

Traditionally, a company seeking to raise capital might do so by conducting an initial public offering (IPO), and investors participating in the IPO would obtain an ownership stake in the company. However, with the introduction of cryptocurrencies and digital tokens, new ways of raising capital and entering the public market have emerged over the last few years. Initial coin offerings (ICOs) function similarly to IPOs in that ICOs help companies raise funds, yet there are…

Although the cryptocurrency market may be ripe for financial investment, individuals and institutions alike have been waiting for guidance from the Internal Revenue Service (IRS) as to how this market will be regulated. Fortunately, the IRS recently shed some light on this matter. On November 13, Charles Retigg, Commissioner of the IRS,  spoke at the American Institute of Certified Public Accountants’ (AICPA) National Tax Conference, and stated that “Cryptocurrency is no longer cash.”…

The following analysis was written by Sarah C. Helton, Principal of Michael Best Strategies and Staff Counsel of Michael Best. Michael Best’s 2018 Technology + the Law Symposium took place in Raleigh North Carolina at Duke University. Last week, Michael Best hosted our first Technology and Law Symposium in the hub of innovation, Research Triangle. We brought together some of the brightest innovators, entrepreneurs, researchers, and legal minds to discuss how emerging technology is…

Michael Best Partner Evan Strassberg was featured by TheStreet in the article titled, “Cryptocurrency Markets Quiet for Now, but Catalysts for Moves Loom,” where he discussed the crypto market, the recent news from the Securities and Exchange Commission (SEC) regarding Exchange Traded Funds (ETFs), and possibilities to come. “…[SEC] the dominant US regulatory body that oversees securities regulations — is set to soon respond to a request for a new Bitcoin ETF. And that’s on the heels of the…

Yesterday, Michael Best’s Senior Counsel Justin Cruz and Brian Mangum hosted a complimentary webinar titled “Blockchain and Intellectual Property: Protecting and Harnessing a Cutting – Edge Technology,” where they discussed the protection of distributed ledger technologies (DLTs), as well as current and future implementations of blockchain and DLT to fields like IP analytics and enforcement. The panel also examined how the application of DLT can provide reliable and secure protection of digital assets, and more. Click …

How the sale of Florida Orange Groves 75 years ago established Securities Law compliance standards for Cryptocurrencies and other Digital Tokens today Earlier this year, William Hinman, Director, Division of Corporate Finance, provided significant guidance on the applicability of U.S. Federal Securities Laws to Initial Coin Offerings (ICOs) and the sale of digital tokens. Director Hinman confirmed in detail that the SEC will continue to apply the “Howey Test” in determining whether the sale of…