October 24, 2019
Author(s): Daniel A. Schnapp
This alert was co-authored by Vincent Tennant and James Taglienti.
The Securities and Exchange Commission (SEC) continues to be an active regulator of digital assets, cryptocurrencies, cryptographic tokens, and other blockchain technologies. If you transact in digital assets the SEC may contact your company in a variety of ways. We provide insights on the different forms in which the SEC has contacted other companies and their responses.
The Securities and Exchange Commission (SEC) continues to be an active regulator of digital assets, cryptocurrencies, cryptographic tokens, and other blockchain technologies.
The SEC may consider your digital asset an unregistered security under the Securities Act of 1933. The SEC directs inquiries on the definition of a security for digital assets to the 2019 “Framework for ‘Investment Contract’ Analysis of Digital Assets,” which builds on the 2017 “DAO Report,” as the commission’s current application of the Howey Test. Unregistered digital asset exchanges and unregistered broker-dealers have seen enforcement actions as well.
The foregoing has been prepared for the general information of clients and friends of the firm. It is not meant to provide legal advice with respect to any specific matter and should not be acted upon without professional counsel. If you have any questions or require any further information regarding these or other related matters, please contact your regular Nixon Peabody LLP representative. This material may be considered advertising under certain rules of professional conduct.
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