SEC regulations, enforcement actions, and securities law analysis for cryptocurrency
While cryptocurrency is not always classified as a security, insider trading laws can still apply to digital asset transactions. Understanding when and how these rules apply is essential for anyone with access to non-public information about crypto projects. The Expanding Reach of Insider Trading Law Traditionally, insider trading applied only to securities. However, recent DOJ…
A Wells Notice from the SEC signals that enforcement staff has made a preliminary decision to recommend charges against your company. While alarming, this is not the end—it is your opportunity to present your defense before formal action is taken. What Is a Wells Notice? Named after SEC Chairman John Wells, a Wells Notice is…
The CFTC has withdrawn outdated digital asset guidance, creating regulatory uncertainty for crypto market participants.
[cryptolaw_takeaway]FASB issued new accounting standards for cryptocurrency in 2023, effective for fiscal years beginning after December 15, 2024. The new rules require fair value measurement with changes recognized in income, replacing the previous impairment-only model. Companies holding crypto assets should prepare for implementation and evaluate financial statement impacts.[/cryptolaw_takeaway] The New FASB Standard In December 2023,…
[cryptolaw_takeaway]Insurance coverage for cryptocurrency holdings remains limited but evolving. Specialized crypto insurance products cover custody, theft, and errors, though capacity is constrained and premiums are high. Traditional insurance policies typically exclude digital asset losses. Understanding coverage gaps is essential for risk management.[/cryptolaw_takeaway] The Insurance Gap Traditional insurance policies generally do not cover cryptocurrency losses: Crime…
[cryptolaw_takeaway]Cryptocurrency litigation continues to expand across securities class actions, bankruptcy proceedings, fraud claims, and regulatory enforcement. Key cases like SEC v. Ripple have established important precedents, while ongoing litigation against major exchanges and DeFi protocols will shape the regulatory landscape for years to come.[/cryptolaw_takeaway] SEC Enforcement Litigation SEC enforcement actions against crypto entities have generated…
[cryptolaw_takeaway]Crypto companies face persistent challenges accessing banking services, with many experiencing account closures, service denials, or restricted relationships. Regulatory pressure, compliance costs, and reputational concerns have led banks to “de-risk” the crypto sector. Recent legislative attention to “debanking” may provide some relief, but banking access remains a significant operational challenge.[/cryptolaw_takeaway] The Debanking Problem Many cryptocurrency…
[cryptolaw_takeaway]Cryptocurrency advertising faces restrictions under SEC rules, FTC guidelines, state consumer protection laws, and platform policies. Paid promotions require clear disclosure, performance claims must be substantiated, and influencer endorsements face heightened scrutiny. The SEC has brought enforcement actions against celebrities and influencers for undisclosed crypto promotion.[/cryptolaw_takeaway] SEC Advertising Restrictions When crypto assets constitute securities, advertising…
[cryptolaw_takeaway]Crypto platforms facilitating transactions in digital asset securities may need to register as broker-dealers with the SEC. The Commission has created a special purpose broker-dealer framework for digital assets, though significant compliance challenges remain. Platforms operating alternative trading systems face additional ATS registration requirements.[/cryptolaw_takeaway] When Broker-Dealer Registration Is Required Section 15(a) of the Securities Exchange…
[cryptolaw_takeaway]OFAC sanctions compliance applies to cryptocurrency transactions without exception. Crypto businesses must screen customers, counterparties, and blockchain addresses against sanctions lists. Recent enforcement actions—including the Tornado Cash designation—demonstrate OFAC willingness to pursue novel sanctions applications in the digital asset space.[/cryptolaw_takeaway] OFAC Jurisdiction Over Crypto The Office of Foreign Assets Control administers U.S. economic sanctions programs,…
[cryptolaw_takeaway]The CFTC regulates cryptocurrency derivatives including futures, options, and swaps under the Commodity Exchange Act. Platforms offering leveraged or margined crypto products to retail customers face registration requirements. The CFTC has brought significant enforcement actions against unregistered derivatives platforms including BitMEX and Binance.[/cryptolaw_takeaway] CFTC Derivatives Jurisdiction The Commodity Futures Trading Commission exercises exclusive jurisdiction over…
[cryptolaw_takeaway]Cryptocurrency creates unique estate planning challenges because assets are controlled by private keys rather than institutional custodians. Without proper planning, digital assets may be permanently inaccessible after death. Estate plans must address key storage, fiduciary access, and compliance with state digital asset laws.[/cryptolaw_takeaway] Why Crypto Requires Special Estate Planning Traditional assets like bank accounts, brokerage…
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