On January 21, 2020, Grayscale Bitcoin Trust (the “Trust”) became the first digital currency investment vehicle to attain the status of an SEC reporting company. The Trust’s sponsor, Grayscale Investments, LLC (“Grayscale”), is a digital currency asset manager that offers cryptocurrency
Digital Currency + Blockchain Perspectives
Digital Currency + Blockchain Perspectives, published by Goodwin Procter, focuses on legal developments and regulatory issues in the digital currency and blockchain sectors. The blog covers enforcement actions, compliance requirements, litigation trends, and regulatory rule changes affecting cryptocurrency exchanges, digital asset commodities, and blockchain technology. It also discusses industry standards and frameworks such as those from the International Swaps and Derivatives Association (ISDA). The content addresses the intersection of financial regulation, anti-money laundering, market conduct, and emerging legal challenges in the evolving digital asset landscape.
Latest from Digital Currency + Blockchain Perspectives - Page 7
Replacing Traditional Capitalization Tables with Blockchain-Based Ledgers
Delaware amended the Delaware General Corporation Law (DGCL) and the Delaware Limited Liability Company Act (DLLCA) in 2017 and 2018, respectively, to permit corporations and limited liability companies to represent capital stock, record equity transactions, and communicate with equityholders via…
In the Matter of Blockchain of Things, Inc., Securities Act Release No. 19621
On December 18, 2019, the SEC issued an order instituting cease-and-desist proceedings pursuant to Section 8A of the Securities Act of 1933, making findings, and imposing penalties and a cease-and-desist order with respect to Blockchain of Things Inc. (BCOT) in…
Rensel v. Centra Tech, Inc., No. 17-cv-24500, 2019 WL 6828270 (S.D. Fla. Dec. 13, 2019)
On December 13, 2019, the U.S. District Court for the Southern District of Florida granted the plaintiffs’ motion for default judgment in a putative securities class action against Centra Tech, Inc. (“Centra Tech”). The putative class action complaint alleged that…
Securities and Exchange Commission v. Eyal and UnitedData, Inc. d/b/a “SHOPIN,” No. 1:19-cv-11325
On December 11, 2019, the SEC filed an enforcement action in the United States District Court for the Southern District of New York against UnitedData, Inc. d/b/a Shopin (“Shopin”) and its CEO (Eran Eyal) for violations of Sections 5(a) and…
Securities and Exchange Commission v. Middleton, No. 1:19-cv-04625
On November 1, 2019, the SEC issued a final judgment as to Veritaseum, Inc., Veritaseum, LLC, and their founder (Reginald Middleton) concerning the defendants’ conduct with respect to an ICO and the manipulation of cryptocurrency. The order was part of…
U.S. v. Scott et al., No. 1:17-cr-00630 (S.D.N.Y. filed Oct. 12, 2017)
On November 21, 2019, Mark S. Scott, a former partner at law firm Locke Lord LLP, was convicted of one count of conspiracy to commit money laundering and one count of conspiracy to commit bank fraud in connection with his…
Internal Revenue Service Clarifies Tax Treatment of Crypto in Certain Instances
On October 9th, the IRS released a revenue procedure ruling and related FAQ, clarifying tax treatment related to cryptocurrency in certain instances. The ruling focused on tax treatment of hard forks and airdrops, and provided that in the event…
Node Agreements for Blockchain-Based Tokens
By Mitzi Chang
The method by which cryptocurrency and digital asset companies issue their blockchain-based tokens into the market has evolved, pushed along by regulatory developments and technological advancements. We have observed the popularity ebb-and-flow of direct token sales, Simple Agreements for Tokens…
IRS Notices Sent to Virtual Currency Traders
On July 26, 2019, the Internal Revenue Service (“IRS”) published a release announcing that it has begun to send notices to virtual currency traders that potentially failed to: (i) report income and pay the resulting tax from virtual currency transactions;…