Not only do operators of virtual currency businesses face a growing body of federal regulations, but they must also contend with a patchwork of state laws. Recent guidance from the Texas Department of Banking provides a thoughtful discussion of the virtual currency industry and interprets the Texas Money Services Act for operators of virtual currency businesses doing business in the state.
Continue Reading
Scott H. Kimpel
Follow: Read more about Scott H. Kimpel
Annual SEC Update
By Scott H. Kimpel on
The year 2018 was a busy one for the SEC in the digital asset space, with the agency cementing its role as the primary de facto regulator of crypto finance in the United States. …
Continue Reading
CFTC Seeks Comment on Ethereum Mechanics and Markets
By Scott H. Kimpel on
Posted in Regulatory
In a recently published Request for Information (“RFI”), the Commodity Futures Trading Commission (“CFTC”) seeks public comment on the underlying technology, opportunities, risks, mechanics, use cases, and markets related to Ether and the Ethereum Network.…
Continue Reading
Congress Considers Bipartisan Bills to Prevent Virtual Currency Manipulation
By Scott H. Kimpel on
Congressmen Darren Soto (D-FL) and Ted Budd (R-NC) recently introduced two bipartisan bills to address virtual currency price manipulation and maintain the United States’ leadership in the cryptocurrency industry.…
Continue Reading
CFTC Publishes Primer on Smart Contracts
By Scott H. Kimpel on
The Commodity Futures Trading Commission (“CFTC”) recently published a detailed primer on smart contracts. The Primer discusses their functionality, use cases, regulatory environment and potential risks.…
Continue Reading
Mining Cryptocurrency Under Federal Election Law
By Scott H. Kimpel on
Posted in Cryptocurrencies, Regulatory
The acting general counsel of the Federal Election Commission recently published for public comment a draft advisory opinion under the Federal Election Campaign Act and related FEC regulations regarding mining cryptocurrencies for the benefit of political committees. …
Continue Reading
SEC Plans “Plain English” ICO Guidance
By Scott H. Kimpel on
Posted in Initial Coin Offerings, Regulatory
At a recent securities regulation conference, Bill Hinman, Director of the SEC’s Division of Corporation Finance, indicated that the agency intends to release “plain English” guidance around the issue of whether an ICO is a security. The idea behind the plain English guidance appears to be to consolidate the SEC staff’s views into a single “how to” document for use by the lay person.…
Continue Reading
Colorado and North Dakota Announce ICO Enforcement Actions
By Scott H. Kimpel on
State and provincial securities regulators across the US and Canada have been actively policing the marketplace for ICOs and security token offerings, supplementing efforts at the federal level undertaken by the SEC. Colorado and North Dakota are among the latest states to announce enforcement actions in the crypto space.…
Continue Reading
SEC Brings First Enforcement Action Against Unregistered Token Exchange
By Scott H. Kimpel on
Posted in Crypto Exchanges, Cryptocurrencies
On November 8, 2018, the SEC announced settled charges against an unlicensed digital token exchange. It represents the SEC’s first enforcement action based on findings that such a platform operated as an unregistered national securities exchange. This action follows first-of-their kind enforcement actions that the SEC brought in September against an unregistered broker-dealer and an unregistered investment company that each transacted in digital securities.…
Continue Reading
New York DFS Licenses First Bitcoin Teller Machine Operator
By Scott H. Kimpel on
Posted in Cryptocurrencies
On November 1, 2018, the New York Department of Financial Services announced its approval of the first virtual currency license for an operator of Bitcoin teller machines. According to DFS, to date it has now approved 12 charters or licenses for companies in the virtual currency space.…
Continue Reading