The Journey from Security to Non-Security: SEC Director Comments on Mutability of Token Treatment

Many in the blockchain and cryptocurrency community were in a celebratory mood on June 14, 2018, following a landmark speech given by William Hinman, Director for the Division of Corporation Finance of the U.S. Securities and Exchange Commission (the “SEC”). Director Hinman’s remarks addressed, …›

March 19, 2018 - Blockchain, Financings, Fintech

Cryptocurrency Compensation: A Primer on Token-Based Awards

These days more and more companies are using virtual tokens to compensate and incentivize founders, directors, employees, and other service providers. For the most part, these token-based awards emulate traditional equity-based awards, but they differ from those awards in some important ways, particularly when it …›

February 23, 2018 - Blockchain, Financings, Fintech

Understanding the CFTC’s Proposed Interpretation of “Actual Delivery” for Cryptocurrency Retail Commodity Transactions

Subject to certain exceptions, the Commodity Exchange Act (CEA) makes it unlawful to enter into a transaction in any commodity with someone who meets the CEA’s definition of a “retail customer.” Nevertheless, many cryptocurrency platforms currently serve retail customers, relying on the CEA’s “actual …›

February 8, 2018 - Blockchain, Fintech, Regulatory

Do You Want to Launch an ICO? Please, Listen to the SEC

The Chairman of the U.S. Securities and Exchange Commission (SEC), Jay Clayton, urged market professionals who in any way participate in initial coin offerings (ICOs) to “act responsibly.” Having once stated that all the ICOs he’s seen have had “a sufficient number of hallmarks of …›