On March 24, the Commodity Futures Trading Commission (“CFTC”) released its Final Interpretive Guidance on Actual Delivery for Digital Assets (“Final Interpretation”), addressing longstanding questions regarding which digital asset transactions could be deemed “retail commodity transactions” under the Commodity Exchange
Cleary FinTech Update
The Latest Insights Into Innovation in Financial Services
The Cleary FinTech Update, published by Cleary Gottlieb Steen & Hamilton LLP, focuses on legal developments and regulatory issues in the financial technology sector. It covers topics such as artificial intelligence and its impact on dispute resolution, quantum computing and cybersecurity in finance, fiduciary duties of cryptoasset software developers, regulatory actions related to digital assets, and enforcement trends involving cryptocurrency companies. The blog addresses emerging challenges at the intersection of technology, finance, and law, including data protection, intellectual property, financial regulation, and compliance matters relevant to fintech businesses and stakeholders.
Latest from Cleary FinTech Update - Page 3
From the Expected to the Surprises: Highlights of SEC OCIE’s 2020 Priorities
On January 7, 2020, the U.S. Securities and Exchange Commission (“SEC”) Office of Compliance Inspections and Examinations (“OCIE”) released its 2020 Examination Priorities (“2020 Priorities”). While at first blush the themes appear consistent with and predictable from their 2019 priorities,…
Leaders of the SEC, CFTC, and FinCEN Issue Joint Statement Reminding Market Participants of Their AML/CFT Obligations for Digital Asset Activities
On October 11, 2019, the leaders of the Commodity Futures Trading Commission, Financial Crimes Enforcement Network, and Securities and Exchange Commission issued a joint statement to remind businesses that engage in digital asset activities of their anti-money laundering (“AML”) and…
SEC Files First Suit Against Alleged Unregistered Broker-Dealer Operating in Digital Asset Markets
On September 18, 2019, the Securities and Exchange Commission (“SEC”) filed its first civil suit alleging violations of broker-dealer registration requirements in U.S. digital asset markets. In a case filed in the U.S. District Court for the Central District of…
SEC Provides Second No-Action Letter in the Digital Asset Space
On July 25, 2019, staff of the Securities and Exchange Commission (“SEC”) granted its second no-action letter in the digital asset space to Pocketful of Quarters, Inc. (“POQ”), permitting POQ to sell digital tokens (“Quarters”) recorded on the Ethereum blockchain…
Are Cryptoassets Property Under English Law?
By Ferdisha Snagg & Anne Lim
In May 2019, the UK Jurisdiction Taskforce (the “UKJT”) of the LawTech Delivery Panel published its public consultation paper on the status of cryptoassets and distributed ledger technology, as well as the enforceability of smart contracts, under English private law.…
Federal District Court Rules OCC Lacks Authority to Issue FinTech Charters
On May 2, 2019, a court in the Southern District of New York (“SDNY”) held that the Office of the Comptroller of the Currency (“OCC”) lacked the statutory authority to charter nondepository special purpose national banks (the so-called “FinTech Charter”).…
France’s Parliament Adopts an Innovative New Framework for Approving Initial Coin Offerings
On April 11, 2019, the French parliament adopted a law (the “Loi Pacte”or “Law”)[1] that establishes a new regulatory framework for initial coin offerings (“ICOs”) of blockchain based tokens by entities established or registered in France. At the heart…
SEC Expands on Its Digital Asset Guidance: At Inception, (Nearly) Every New Token Is a Security
On April 3, 2019, staff of the Securities and Exchange Commission released (1) a framework providing principles for analyzing whether a digital asset constitutes an investment contract, and thus a security, as defined in SEC v. W.J. Howey Co. and (2) a…
The Conference of State Banking Supervisors Seeks to Improve Consistency of FinTech Regulation, but Questions Remain
The United States offers an innovative and diverse marketplace along with a sound infrastructure for new cryptocurrency and digital asset businesses. However, the U.S. regulatory framework for digital asset businesses creates significant barriers to innovation and risks frittering away the…