Sales of Digital Tokens & ICOs – Securities, Litigation, and Tax Concerns Join Michael Best Cryptocurrency and Securities attorneys for a complimentary one-hour live webinar from 12:00 – 1:00 PM CST on Tuesday, April 30, 2019. 2018 was (and 2019 continues to be) a challenging time for parties engaged in sale of digital tokens and conducting initial coin offerings and other cryptocurrency offerings (collectively ICOs). The Securities and Exchange Commission (SEC) made it clear that…
Blockchain technology continues to garner the attention and trust by the federal government, recognizing that the technology can make our government more efficient, transparent, and secure. In fact, some federal agencies are leading in the adoption of blockchain rather than falling behind the private sector. Such interest and embrace of blockchain technology is largely because of innovative leaders in government who recognize the problems with legacy systems and are willing to change them in order…
How the Sale of Florida Orange Groves 75 Years Ago Established Securities Law Compliance Standards for Cryptocurrencies and Other Digital Tokens Today Michael Best Partner and Chair-Elect of the Securities Section of the Utah State Bar Brad Jacobsen, and Michael Best Associate Hunter Reynolds published an article which was featured in the March/April Issue of the Utah Bar Journal, titled, “75 Years of Howey: How the Sale of Florida Orange Groves 75 Years Ago Established…
Michael Best Senior Counsel Cheryl Aaron was published in Lex Mundi’s Blockchain White Paper Series in the article titled, “Accepting Payment in Bitcoin: Considerations for Merchants.” In her whitepaper article, she discusses issues to be aware of if you are a business considering accepting cryptocurrencies, such as bitcoin, as payment. Cheryl analyzes volatility, tax implications, as well as rules and regulations to be sure to follow. She writes: “Before businesses and online retailers accept cryptocurrency…
With stablecoins like Tether and Gemini making news recently, it is worth exploring what the term “stablecoin” means, and how it might impact businesses and consumers in the coming years. For starters, a stablecoin is a type of cryptocurrency that is designed to mitigate the short-term volatility that most cryptocurrencies are known for. Stablecoins are typically pegged to and collateralized by fiat currencies in a fixed ratio, and the most popular currencies are the U.S.…
Michael Best attorney Emily Lyons published an article discussing the intersection of blockchain technology and the Agribusiness and Food & Beverage industries. Emily writes: “When most people think of blockchain, they think of its application to cryptocurrencies like bitcoin. However, the technology has the potential for much broader uses across a wide swath of industries, particularly including agriculture and food. We are already starting to see some use cases, as there has been a recent…
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…