Mark Alexander Hopkins, known as “Doctor Bitcoin,” pled guilty in the Northern District of Texas on June 29, 2021, to illegally operating a cash-to-cryptocurrency conversion business. According to a press release from the Department of Justice, Hopkins pled guilty to one count of operation of an unlicensed money transmitter business.
Continue Reading “Doctor Bitcoin” Pleads Guilty to Illegal Crypto Conversion Scheme

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.
Continue Reading Texas Department of Banking Clarifies Authority of State Banks to Provide Virtual Currency Custody Services

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.
Continue Reading Texas Legislature Proposes Significant Virtual Currency Bill

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.
Continue Reading An Update on State Smart Contract Legislation

On January 30, 2019, a Florida appellate court reversed the trial court’s dismissal of State v. Espinoza, instead holding that a Bitcoin business was both a money transmitter and a payment instrument seller, subject to Florida’s statutes governing money services businesses.
Continue Reading Florida Court Finds Virtual Currency Subject to Money Service Businesses Law

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 Texas Issues Updated Guidance for Virtual Currency Businesses

On July 11, 2018, in an emergency cease and desist order, the Texas securities commissioner took action against several individuals and affiliated companies based in Utah to halt the offering of unregistered cryptocurrency mining investments to Texas residents.
Continue Reading Texas Shuts Down Offering of Interests in Cryptocurrency Mining Businesses