On April 17, 2018, the New York State Attorney General (“NYAG”) sent a “Virtual Markets Integrity Initiative Questionnaire” to 13 companies operating virtual currency trading platforms. The questionnaire consists of 34 questions covering a number of topics, including
Venture Law Blog
Legal Issues Regarding Emerging Companies & Venture Capital
The Venture Law Blog, published by Sheppard, Mullin, Richter & Hampton LLP, focuses on legal issues relevant to venture capital, startup companies, and emerging technologies. It covers topics such as mergers and acquisitions involving AI-powered companies, regulatory compliance for venture lending, corporate transparency and beneficial ownership reporting under the Corporate Transparency Act, and tax reporting obligations related to employee stock options and purchase plans. The blog also addresses risk management, intellectual property protection, cybersecurity, and data privacy concerns in the context of venture transactions and financing. It serves as a resource for legal developments affecting venture-backed businesses and financial institutions engaged in venture lending.
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Crypto-Crime: The SEC and DOJ Go After BitFunder and Its BitFounder
Taking further steps into the world of cryptocurrency, two entities of the federal government recently took legal action against BitFunder, a now-defunct Bitcoin exchange, and its founder, Jon Montroll. The Securities and Exchange Commission filed civil charges against BitFunder and…
Patent Strategies for Cryptocurrencies and Blockchain Technology
By James Gatto
Cryptocurrencies and blockchain technology are rapidly emerging as disruptive technologies. As has happened with many new technologies, particularly disruptive ones, a patent arms race is occurring. The number of patents being filed for these technologies is rapidly increasing.
The number…
Seeking foreign investors for your tech startup? Congress says, “not so fast.”
The U.S. Congress is currently considering legislation that would tap the brakes on foreign direct investment in the United States, particularly on investments in sensitive industries like artificial intelligence, robotics, and semiconductors. We know: you’re saying we already have that…
When Does Software Become Securities?
The SEC Munchee Order and Chairman’s Statement
On December 11, 2017, the U.S Securities and Exchange Commission (“SEC”) issued a cease and desist order (“Order”) against Munchee, Inc.’s (“Munchee”) $15 million Initial Coin Offering (“ICO”). The SEC determined that the tokens…
Deadline Approaching: Action Required by December 31 To Avoid Losing DMCA Safe Harbor Protection
The U.S. Copyright Office is making changes to the Digital Millennium Copyright Act (DMCA) safe harbor agent registration process. The changes impact both new online service providers as well as existing online service providers who have already registered an agent.…
At Last! Relaxation of Federal Securities Regulations for Private Company Stock Incentive Awards may be on the Horizon
Many privately held companies rely on equity compensation awards (typically stock options) to recruit, retain and motivate key employees and other service providers. The issuance of such equity compensation awards generally needs to comply with, among other things, federal securities…
The SEC and ICOs: Putting the SEC’s Determination that DAO Tokens are Securities in Context
On July 25, 2017, the U.S. Securities and Exchange Commission (“SEC”) issued a report (“Report”) detailing its investigation into whether the DAO (an unincorporated “decentralized autonomous organization”), Slock.it UG (“Slock.it”), Slock.it’s co-founders, and intermediaries violated the federal securities laws. The SEC…
SEC Declares That Initial Coin Offerings (ICOs) May Be Securities; Finds DAO a Security
By James Gatto
The SEC has opined that, depending on the facts and circumstances of each individual ICO, the virtual coins or tokens that are offered or sold may be securities. If they are securities, the offer and sale of these virtual coins…
Dear Congress: Your District Needs a New E-4 Visa for Promising Entrepreneurs
Procedural History
In August 2016, the Department of Homeland Security proposed an “International Entrepreneur” parole rule that would allow qualifying foreign entrepreneurs to develop and grow their start-up companies in the United States. After public comment, the rule was finalized…