The Treasury Department OFAC designation of Tornado Cash sent shockwaves through the crypto industry. For the first time, the US government sanctioned not a person or entity, but autonomous smart contract code. Understanding the implications is critical for DeFi participants. What OFAC Did In August 2022, OFAC added Tornado Cash—an Ethereum mixing protocol—to the Specially…
The collapses of FTX, Celsius, Voyager, and BlockFi have thrust crypto bankruptcy into the spotlight. Understanding how bankruptcy law applies to digital assets helps creditors maximize recovery and avoid common pitfalls. Are Your Crypto Assets Property of the Estate? The central question in crypto bankruptcy is whether customer deposits belong to the debtor estate or…
Cryptocurrency compensation has become standard in the blockchain industry. From token grants to salary payments in Bitcoin, employers and employees must navigate complex legal and tax issues unique to digital asset compensation. Token Grant Structures Common token compensation arrangements include: Restricted Token Units (RTUs) – Similar to RSUs, tokens vest over time Token Options –…
The approval of spot Bitcoin ETFs marked a watershed moment for cryptocurrency legitimacy. Understanding the regulatory framework governing these products is essential for issuers, authorized participants, and investors alike. SEC Approval Framework After years of rejections, the SEC approved spot Bitcoin ETFs in January 2024. Key factors in the approval included: Surveillance-sharing agreements with regulated…
The cryptocurrency industry faces a growing wave of class action litigation. From securities fraud claims to consumer protection suits, understanding the landscape helps companies prepare their defenses and mitigate exposure. Common Class Action Theories Plaintiffs attorneys have developed several theories against crypto companies: Securities fraud – Allegations of material misstatements in token offerings Unregistered securities…
Market manipulation in cryptocurrency markets has attracted intense regulatory scrutiny. Understanding the legal definitions and enforcement patterns helps market participants avoid crossing the line from aggressive trading into illegal conduct. Wash Trading Wash trading involves simultaneously buying and selling the same asset to create the illusion of market activity. In crypto markets, this is particularly…
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…
We use cookies to enhance your experience, analyze site traffic, and for marketing purposes. Learn more about how we use cookies
These cookies are necessary for the website to function and cannot be switched off. They are usually set in response to actions you take, such as setting your privacy preferences, logging in, or filling in forms.
These cookies help us understand how visitors interact with our website by collecting and reporting information anonymously.
These cookies may be set through our site by our advertising partners to build a profile of your interests and show you relevant ads on other sites.
You can choose to accept all cookies or only essential cookies. You can also change your preferences at any time by clearing your browser cookies and revisiting our site.
For more information about your privacy rights, please see our Privacy Policy.