On June 10, 2021, the Texas Department of Banking issued an industry notice addressing the authority of Texas state-chartered banks to provide virtual currency services to customers. This is a notable development as Texas has the most state-chartered banks of any state in the country.
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Regulatory
Federal Bank Regulators Move to Provide Further Guidance on Digital Asset Activities
By Patrick J. Boot on
Posted in Regulatory
In the past month, the Federal Reserve, FDIC and OCC have each detailed their upcoming focus on digital asset activities in the banking industry. So far, state banking regulators have often outpaced their federal counterparts in terms of issuing formal regulations and guidance around digital assets. Many banks are waiting to explore potential digital asset products and services until the functional federal bank regulators provide concrete guidance to complete the picture. …
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U.S. Treasury Announces Cryptocurrency Reporting Requirements
By Hunton Andrews Kurth LLP on
Posted in Cryptocurrencies, Regulatory
On May 20, 2021, the U.S. Department of the Treasury announced a proposal that would require any cryptocurrency transaction of $10,000 or more to be reported to the Internal Review Service.…
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SEC Staff Issues Statement on Bitcoin Futures
By Scott H. Kimpel on
Posted in Cryptocurrencies, Regulatory
On May 11, 2021, staff in the Division of Investment Management (IM) at the Securities and Exchange Commission issued a statement (the Statement) on “Funds Registered Under the Investment Company Act Investing in the Bitcoin Futures Market.” The Statement provides a series of warnings to retail investors about certain risks associated with investments in registered mutual funds whose portfolios include Bitcoin futures. But the Statement also provides further insight into the way SEC staff analyze the market for Bitcoin Futures more broadly.…
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SEC Chairman Testifies About Digital Assets
By Scott H. Kimpel on
Posted in Cryptocurrencies, Regulatory
In a wide-ranging hearing before the House Financial Services Committee on May 6, 2021, SEC Chairman Gary Gensler answered a series of questions on cryptocurrency and digital asset regulation. His statements begin to shed some light on Chairman Gensler’s official approach to regulating digital asset securities. …
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Rulemaking Petition Seeks SEC Guidance on NFTs
By Scott H. Kimpel on
Posted in Regulatory
A recent rulemaking petition to the SEC requests that the agency issue a concept release on nonfungible tokens, or NFTs. The petition is hopeful that an SEC rulemaking paired with an opportunity for public input will resolve regulatory uncertainty for parties looking to create NFTs and facilitate their sale.…
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Texas Legislature Proposes Significant Virtual Currency Bill
By Daryl B. Robertson & Patrick J. Boot on
Posted in Cryptocurrencies, Regulatory
Texas is seeing considerable momentum with respect to a proposed digital asset law that is being considered in the 2021 legislative session in the form of House Bill 4474. In short, the Texas Virtual Currency Bill provides a basic legal framework for companies dealing with virtual currencies.…
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The Nonfungible Token
By Scott H. Kimpel on
Posted in Regulatory
A recent Bloomberg article reported that average prices for nonfungible tokens, or NFTs, are down approximately 70 percent from recent highs. A wide range of NFTs have begun to enter the marketplace over the past several months. A digital work of art represented by an NFT recently sold at auction for over $69 million, and even a professional sports league has begun to issue NFTs. A fascinating debate about the social and economic utility of NFTs has emerged, but what are some of the legal issues associated with this new digital asset class?…
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Bipartisan Bill to Exclude Digital Tokens from Federal Securities Laws
By Chelsea Lomprey on
Posted in Regulatory
On March 9, 2021, a bipartisan bill was reintroduced that would, among other things, exclude digital tokens from the definition of a security under federal securities laws.…
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New York Attorney General Announces Settlement with Bitfinex
By Scott H. Kimpel on
Posted in Crypto Exchanges, Regulatory
As we previously reported, the New York Attorney General has been in protracted litigation with crypto exchange Bitfinex and affiliated stablecoin-issuer Tether. On February 23, 2021, the Attorney General announced a definitive settlement of the matter. The settlement cements the New York Attorney General’s intention aggressively to police the virtual currency marketplace using the expansive anti-fraud authority granted under the Martin Act…
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