The Office of the Comptroller of the Currency issued a conditional approval last week for Anchorage Digital Bank to become the first federally-chartered crypto bank.
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Crypto Exchanges
Wyoming Issues Second Crypto Bank Charter
Wyoming recently awarded its second special-purpose depository institution charter to Avanti Bank. Kraken was the first institution to receive the newly created SPDI charter in September. As Wyoming had likely hoped when it passed a flurry of blockchain legislation, it appears that it is starting to take hold as a digital-asset-friendly banking state.
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The First Cryptocurrency Bank
On Wednesday, September 16, 2020, the cryptocurrency exchange Kraken Financial became the first crypto company to obtain a bank charter.
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Appellate Court Greenlights NYAG’s Bitfinex Investigation
As we previously reported, for over a year the New York Attorney General has been seeking to enforce an investigative subpoena under New York’s expansive Martin Act against cryptocurrency exchange Bitfinex and its affiliated companies that issue the Tether stablecoin.
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The Crypto-Currency Act of 2020
On March 9, 2020, Rep. Paul Gosar (R-AZ) introduced H.R. 6154, the Crypto-Currency Act of 2020. The bill is the latest effort to provide federal oversight to the burgeoning market for crypto-assets.
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Digital Assets Featured in US Treasury 2020 National Strategy
The US Treasury Department recently announced its 2020 National Strategy for Combating Terrorist and Other Illicit Financing (the 2020 Strategy). The 2020 Strategy identifies the US government’s top anti-money laundering and countering the financing of terrorism priorities and serves as a roadmap of Treasury’s plan to stay ahead of evolving illicit finance threats. Digital assets feature heavily in the 2020 Strategy.
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SEC Commissioner Peirce Proposes to Fill the Gap Between Regulation and Decentralization
As has been widely reported, SEC Commissioner Hester Peirce (aka “Crypto Mom”) recently delivered a thoughtful speech entitled “Running on Empty: A Proposal to Fill the Gap Between Regulation and Decentralization,” including with it a model rule on digital token sales. The model rule has made waves in the crypto community because it proposes a three-year safe harbor from SEC registration while a development team builds out a functional, decentralized network.
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Captive Insurance Offers Protection to Growing Crypto-Currency Industry
As reported last week on the Hunton Insurance Recovery Blog, crypto-asset losses continue to rise and the industry is taking steps to protect clients and investors through insurance. Crypto-exchange and custody provider, Gemini Trust Company, LLC (“Gemini”), recently launched its own captive insurance provider, Nakamoto, Ltd. Captive insurance is an alternative to self-insurance whereby a company creates a licensed insurance company to provide coverage for itself.
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Structured Finance and Securitization 2019 Year in Review
In 2019, Hunton Andrews Kurth LLP’s structured finance and securitization team closed a number of substantial transactions, developed novel structures for our clients and advised on important tax, regulatory and other industry developments, including emerging uses of blockchain solutions.
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SEC Cautions Investors About Initial Exchange Offerings
In an investor alert issued on January 14, 2020, staff in the Securities and Exchange Commission’s Office of Investor Education and Advocacy warned investors in initial exchange offerings (IEOs) to “use caution before investing . . . through online trading platforms.” According to the SEC staff, “Claims of new technologies and financial products, such as those associated with digital asset offerings, and claims that IEOs are vetted by trading platforms, can be used improperly to entice investors with the false promise of high returns in a new investment space.”…
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