Blockchain and Financial Services Blog

Showing 17 posts in Blockchain.

HR 171: Kentucky’s First Step Towards a Sustainable and Innovative Blockchain Market

For anyone who has been paying attention to the recent cryptocurrency craze globally and the growing industry buzz around its underlying technology, it is apparent that blockchain technologies may become the future: the future of online transactions, securing data, supply chains, internal operations and many more. Read More ›

Two offerings – one token: Simultaneous Rule 506(c) and Reg S offerings of security tokens

While the ICO market weathers a frigid crypto winter and awaits further regulatory clarity, many issuers have conceded that their digital asset is a “security” and are proceeding under available exemptions from registration under U.S. securities laws. Read More ›

What’s around the bend for crypto and blockchain developers and the agencies tasked with regulating a burgeoning, transnational industry?

Frost Brown Todd attorneys Courtney Rogers Perrin and Joshua Lewis join Nick Sciple of the Industry Focus podcast to discuss the meteoric rise and recent retrenchment of the ICO market. Read More ›

Five Things to Know About Security Token Offerings

A security token offering (STO) is, as its name indicates, a public or private sale of a “security,” evidenced by a digital token transferable on a blockchain to investors to raise capital. Giving an asset another name (like “token”) does not transform it into something other than a security or exempt an issuer from compliance with securities laws. Read More ›

From Gray to Black and White: Traditional Regulations Come to Crypto

For nearly a decade, participants in the blockchain and cryptocurrency space have operated in a regulatory compliance gray zone. Recent developments — at both the federal and international levels — signal that the time for plausible deniability or unregulated freedom is coming to an end and more traditional regulations are moving to the forefront.

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Cryptocurrency or a Security? Only the Jury Knows for Sure

As anyone launching an initial coin offering (ICO), token-generation event or whatever else they want to call it knows well—whether a token offering is a security or a cryptocurrency is a hot topic. The SEC seems to indicate many tokens are securities, while FinCEN says cryptocurrencies. Until recently, few courts have had the opportunity to weigh in on the matter. But on September 11, the United States District Court for the Eastern District of New York, in United States v. Zaslavskiy, issued a Memorandum & Order (the "Order") on the defendant’s motion to dismiss. Read More ›

Bankers, Bitcoins And the Bank Secrecy Act - A Webinar about Business Opportunities & Risks

SAVE THE DATE: August 28, 2018, at 3:00 p.m. EST

The growing importance of blockchain businesses, and particularly crypto currencies, is undeniable. Like every other important disruptive technology, think of the internet for example, there will be winners and losers among the early adopters, and serious business opportunities for “traditional” banks open to serving participants in the space. To be successful, it will be essential for crypto businesses to find financial institutions to serve their banking needs, such as the deposit of fiat money, the transfer of payments from customer and to creditors and suppliers, and potentially lending needs. But for now, while most bankers are interested, they are also worried about banking this industry of tomorrow. However, as the banking industry has proven over its long history, bankers will master the risks and rewards of servicing this new industry, and in doing so will come the capture of new sources of fee income and loan revenue. Read More ›

Ohio Enacts Law Acknowledging Blockchain Transactions and Granting Safe Harbor Protections to Eligible Businesses from Data Breach Claims

On Friday, August 3, Governor Kasich signed Ohio Senate Bill 220, which acknowledges for the first time the legitimacy of blockchain transactions as enforceable electronic transactions and creates an affirmative defense to tort actions against eligible businesses for claims relating to data breaches. The law goes into effect in 90 days. Read More ›

New York Attorney General Launches Inquiry into Cryptocurrency Exchanges

On April 17, 2018, New York Attorney General Eric T. Schneiderman (the “NY AG”) launched the “Virtual Markets Integrity Initiative” (the “Initiative”), a fact-finding inquiry into the policies and practices of platforms used by consumers to trade virtual currencies like bitcoin and ether. Read More ›

Arizona Creates Legislative Sandbox to Foster Fintech Business Growth

Many entrepreneurs and existing companies exploring opportunities in the fintech space often experience the daunting hurdles, or uncertainties, imposed by state-level regulations. Under traditional regulatory programs, the licensing process can take months and consume tens of thousands of dollars in fees, compliance costs, and legal expenses. Some startups, with thin capital reserves, face the Hobson’s Choice of blatant non-compliance or simply avoiding innovating in this important space all together. Either way, the state’s consumers and businesses are ultimately disadvantaged.  The State of Arizona recognized this common problem and very recently passed legislation to safely encourage such worthwhile business innovation. Read More ›

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Attorney Spotlight

Vincent E. Mauer represents clients in commercial and business disputes with particular emphasis on financial institutions and instruments, including financial institution bonds, securities, insurance policies and commercial loans.

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