SAB 121: How SEC Accounting Guidance Transformed Crypto Custody SEC Staff Accounting Bulletin No. 121, issued in March 2022, fundamentally altered the economics of cryptocurrency custody for regulated financial institutions. The guidance, which requires entities to recognize both an asset and liability for customer crypto holdings on their balance sheets, created significant challenges for banks…
When Tokens Escape Securities Classification: A Practical Analysis The question of when a digital token does not constitute a security represents one of the most important determinations in cryptocurrency law. While the SEC Howey test analysis often focuses on what makes a token a security, understanding the circumstances where tokens fall outside securities regulation provides…
SEC Registration Exemptions: Compliance Pathways for Token Offerings When a cryptocurrency token qualifies as a security, the Securities Act of 1933 requires registration before any sale unless an exemption applies. Several exemptions have emerged as viable pathways for compliant token offerings, each with distinct requirements, limitations, and strategic considerations. Regulation D: Private Placement Exemptions Regulation…
Token Safe Harbor Proposals: Navigating Paths to Regulatory Clarity The cryptocurrency industry has long sought safe harbor provisions that would allow legitimate token projects to develop without immediate securities registration requirements. Commissioner Hester Peirce proposed framework, along with various legislative initiatives, represents the most developed attempts to create workable compliance pathways for digital asset issuers….
The Ripple Decision: A Watershed Moment for Crypto Securities Law The SEC v. Ripple Labs case stands as one of the most consequential legal battles in cryptocurrency history. The July 2023 summary judgment ruling, subsequent appeals, and eventual settlement have reshaped how courts, regulators, and the industry understand securities classification for digital assets. This comprehensive…
SEC Crypto Task Force 2025: A New Era of Digital Asset Regulation The Securities and Exchange Commission approach to cryptocurrency regulation has undergone significant transformation in 2025. With new leadership at the helm and a dedicated Crypto Task Force, the agency is charting a different course from its enforcement-heavy approach of previous years. This analysis…
Legal technology can streamline crypto compliance and operations. Understanding available tools helps companies build efficient legal infrastructure. Blockchain Analytics Chainalysis, Elliptic, and TRM Labs provide transaction monitoring and risk assessment. These tools are increasingly essential for AML compliance. Compliance Platforms Integrated compliance platforms combine KYC, transaction monitoring, and case management. Evaluate platforms for regulatory acceptance…
Legal expenses represent significant costs for crypto startups. Strategic budgeting helps companies access essential legal services within resource constraints. Priority Allocation Prioritize regulatory compliance, corporate formation, and investor documentation. Defer nice-to-have items until funding allows. Fixed vs. Hourly Fixed fee arrangements provide budget certainty for defined projects. Hourly billing may suit ongoing advisory needs. In-House…
White papers remain important for crypto projects despite evolving formats. Legal review of white papers helps avoid regulatory pitfalls. Securities Disclosure White papers may constitute offering documents subject to antifraud provisions. Accuracy and completeness matter regardless of format. Forward-Looking Statements Roadmaps and projections create liability risk. Appropriate disclaimers and reasonable bases for projections provide protection….
The crypto regulatory landscape continues evolving rapidly. Understanding emerging trends helps companies prepare for upcoming requirements. SEC Priorities Expect continued enforcement focus on unregistered offerings, exchange registration, and investment adviser compliance. Regulatory clarity remains elusive. Congressional Action Stablecoin legislation and market structure bills may advance. Political dynamics will determine the pace and scope of legislative…
Crypto law has become a dynamic practice area with growing opportunities. This guide helps lawyers and law students build careers in blockchain legal practice. Practice Areas Crypto law spans securities, commodities, AML, tax, IP, and litigation. Most practitioners specialize within these broader categories. Building Expertise Develop technical understanding of blockchain, follow regulatory developments, attend industry…
Nonprofits can benefit significantly from crypto donations. Understanding the legal framework helps organizations accept and manage digital asset gifts appropriately. Gift Acceptance Policy Establish clear policies addressing which crypto assets to accept, valuation procedures, and conversion timing. Acknowledgment Requirements IRS rules require specific acknowledgments for crypto donations. Valuation responsibility typically falls on the donor. Liquidation…
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