On May 5, 2023, New York Attorney General Letitia James released proposed legislation that seeks to regulate all facets of the cryptocurrency industry. Entitled the “Crypto Regulation, Protection, Transparency, and Oversight (CRPTO) Act,” if enacted the draft bill would substantially expand New York’s oversight of crypto enterprises conducting business in the Empire State.
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DOJ Brings Criminal Charges Against Two Defendants in NFT Fraud
On March 24, 2022, the US Attorney for the Southern District of New York announced charges against two defendants and alleged an ongoing fraud involving the sale of nonfungible tokens. The federal criminal case is among the first involving NFTs and foreshadows further regulatory scrutiny of the popular digital asset class.
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An Update on State Smart Contract Legislation
In the fall of 2018 we posted a state-by-state summary of smart contract legislation which included an overview of legislation passed in Arizona, Tennessee and Vermont, as well as an update on legislation pending in other states at the time. Over the past few years, a multitude of states have tackled smart contract legislation with varying degrees of detail and success. Most state smart contract legislation has fallen into three broad categories: formation of exploratory committees, recognition of basic smart contract concepts and comprehensive treatment of smart contracts and related technologies.
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DFS Denies Bittrex Applications for New York Virtual Currency and Money Transmitter Licenses
In a letter released to the public on April 10, 2019, New York’s Department of Financial Services (DFS) denied Bittrex’s two separate applications to engage in a virtual currency business and to engage in money transmission activity in New York state.
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Wyoming Legislature Considers Digital Asset Legislation
A vigorous competition among the states to regulate digital assets has begun to develop. Some states, such as New York, have adopted regulations that take a very proscriptive approach to regulation in the interest of consumer protection. States like Wyoming, on the other hand, see an opportunity to stimulate the local economy and take a far more permissive view of digital assets. …
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Texas Issues Updated Guidance for Virtual Currency Businesses
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.
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New York DFS Licenses First Bitcoin Teller Machine Operator
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.
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Alibaba Wins Preliminary Injunction Against Developers of Cryptocurrency “AlibabaCoin” In Trademark Dispute
On Monday, October 22, 2018, Judge J. Paul Oetken of the Southern District of New York granted Alibaba Group Holding Limited’s motion for preliminary injunction in a trademark action against several foreign-based promoters and developers of a new cryptocurrency called “AlibabaCoin.” In doing so, the court considered several novel issues around personal jurisdiction and blockchain.
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New York Attorney General Reports on Crypto Exchanges
A new report from the New York Attorney General summarizes the findings of its recent Virtual Markets Integrity Initiative. The NYAG concluded that crypto trading platforms vary significantly in their risk management strategies and in the ways they fulfill customer responsibilities.
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New York DFS Authorizes Two Stablecoins
On September 10, 2018, the New York Department of Financial Services authorized Gemini Trust Company and Paxos Trust Company to each offer a price-stable cryptocurrency, also known as a stablecoin, pegged to the U.S. dollar.
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