[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]Privacy coins like Monero, Zcash, and Dash face heightened regulatory scrutiny due to features that obscure transaction details. While privacy-preserving technology serves legitimate purposes, regulators express concern about money laundering, sanctions evasion, and law enforcement challenges. Many exchanges have delisted privacy coins in response to regulatory pressure.[/cryptolaw_takeaway] How Privacy Coins Work Privacy-focused cryptocurrencies implement various…
[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…
[cryptolaw_takeaway]The Markets in Crypto-Assets Regulation (MiCA) establishes the European Union comprehensive framework for crypto asset regulation. Effective in phases starting 2024, MiCA creates licensing requirements for crypto service providers, stablecoin issuers, and token offerings. Companies serving EU customers must understand these requirements regardless of where they are based.[/cryptolaw_takeaway] MiCA Overview MiCA represents the world first…
[cryptolaw_takeaway]Crypto lending platforms have faced significant regulatory enforcement, with the SEC, state regulators, and bankruptcy courts all finding yield-bearing crypto accounts constitute securities. The collapses of Celsius, Voyager, BlockFi, and Genesis demonstrate the risks of unregistered lending products. Platforms offering yield on crypto deposits should carefully evaluate securities law compliance.[/cryptolaw_takeaway] The Securities Law Analysis Crypto…
[cryptolaw_takeaway]Cryptocurrency custody requirements vary based on the entity type and regulatory framework. Investment advisers must use qualified custodians for client assets, while exchanges face custody standards under state and federal money transmission rules. Institutional adoption increasingly depends on robust custody solutions that satisfy regulatory requirements while maintaining security.[/cryptolaw_takeaway] Investment Adviser Custody Requirements Investment advisers registered…
[cryptolaw_takeaway]Token classification as a security or non-security depends on economic substance, not labels. The SEC has emphasized that calling a token a utility token does not exempt it from securities laws if it functions as an investment contract. Key factors include functional utility at launch, marketing emphasis, development team involvement, and secondary market expectations.[/cryptolaw_takeaway] Why…
[cryptolaw_takeaway]Cryptocurrency exchanges face overlapping federal and state regulatory requirements spanning anti-money laundering, securities, commodities, and consumer protection laws. Building a robust compliance program requires dedicated resources, experienced personnel, and ongoing adaptation to evolving regulatory expectations.[/cryptolaw_takeaway] Multi-Layered Regulatory Framework Operating a cryptocurrency exchange in the United States requires navigating multiple regulatory regimes simultaneously: FinCEN: Registration as…
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