Cryptocurrency and Blockchain Resources Center
The increasing use of cryptocurrencies and other digital assets has given rise to complex legal issues relating to regulatory status (including requirements to register as broker-dealers, commodity pool operators, commodity trading advisors, investment advisers, investment companies, securities exchanges and money service businesses), compliance (including valuation, custody and reporting), corporate law (such as maintain shareholder records), securities transactions (including initial coin offerings and M&A transactions), fund formation, the launch of ETFs and derivatives, venture capital, taxation, anti-money laundering, litigation and regulatory enforcement.
Dechert offers sophisticated and knowledgeable legal counsel to clients navigating this rapidly evolving space. At the heart of Dechert’s cryptocurrency and blockchain practice is a deep understanding of the technologies that drive blockchain and related developments in distributive computing networks. In addition, Dechert is distinctive among leading law firms in this area by bridging the financial service regulation and new financial technology to find solutions for our clients.
Since the launch of bitcoin in 2009, cryptocurrencies and the encrypted, decentralized blockchain protocol that underpins them have grown from abstract theories to a transformational force that is disrupting the way many industries will operate for decades to come.
Decentralized ledger technology and smart contracts could ultimately reshape many industries, including financial services, intellectual property, logistics and supply chain, the internet of things, energy, health care, insurance and the sharing economy.
The landscape for financial products and services integrating blockchain technology is evolving rapidly. Whether launching funds to invest directly or indirectly in digital assets or creating new coins or tokens in connection with the launch of new distributive networks, clients operating in this area have specialized needs that Dechert is particularly well-placed to serve.
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- Advising and assisting private cryptocurrency fund sponsors on all aspects of the fundraising lifecycle, including fund formation, regulatory compliance and market terms; preparing offering documents for new private cryptocurrency funds, including private placement memoranda, limited partnership agreements and subscription agreements; global regulatory advice; tax efficient investment structuring; and carried interest, management equity arrangements and other incentive structuring.
- Representing registrants with proposals for Securities and Exchange Commission (SEC)-registered cryptocurrency funds (both funds registered under the Investment Company Act and those registered only under the Securities Act) including proposals for obtaining exposure through both physical cryptocurrency holdings and through use of futures contracts.
- Preparing and negotiating registration statements and other filings.
- Extensive work with multiple divisions of SEC relating to novel regulatory issues raised by such funds.
- Advising clients regarding Investment Company Act and Investment Advisers Act issues raised by use of blockchain technology for conventional asset classes – e.g., custody.
- Advising on the latest regulatory developments from the SEC, Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA) regarding cryptocurrencies, cryptocurrency derivatives and other digital assets.
- Working with companies considering initial coin offerings to navigate whether tokens are considered securities under relevant U.S. federal and state laws.
- Advising on Anti-Money Laundering/Know Your Customer issues and related compliance issues.
- Advising on money services businesses and money transmitters and their registration requirements.
- Working with venture capital firms on transactions involving blockchain-related companies.
- Advising intermediaries in the cryptocurrency economy – including brokers and exchanges – on their compliance obligations.
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- Cryptoasset fraud: the English court makes pre-emptive remedies available to victims of international fraud (March 22, 2021)
- Russian Laws Advance Framework for the Use and Regulation of Digital Financial Assets and Currency (March 16, 2021)
- OCC Confirms Authority of National Banks to Use Independent Node Verification Networks and Stablecoins for Payment Activities (February 2, 2021)
- China to Legalize Digital RMB and Prohibit Competitors (November 12, 2020)
- DOJ Cyber-Digital Task Force Issues Report on Cryptocurrency Enforcement Framework (October 26, 2020)
- SEC Staff Issues No-Action Letter Regarding Digital Asset Securities Trading on ATS Platforms (October 21, 2020)
- OCC and SEC Staff Issue Statements on Stablecoin Reserves (October 12, 2020)
- OCC Allows National Banks to Custody Cryptocurrency (September 8, 2020)
- Developments on Digital Assets and Blockchain (August 13, 2020)
- CFTC Sets the Parameters for Which Virtual Currencies are Subject to Full CFTC Jurisdiction by Merit of How They are Bought and Delivered (August 10, 2020)
- English Court Rules Bitcoin is Property (February 20, 2020)
- China to Lead in Blockchain, Digital Currency (November 26, 2019)
- IRS Issues Guidance on Tax Treatment of Virtual Currency (November 4, 2019)
- AMLD5 in Germany: Implementation provides far-reaching licensing requirements for crypto-asset service providers (August 16, 2019)
- SEC and FINRA Staffs Jointly Address Broker-Dealer Custody of Digital Asset Securities (August 9, 2019)
- SEC Staff Announces Guidance and No-Action Relief Regarding Status of Digital Assets as Securities (April 18, 2019)
- SEC Staff Requests Comments on the Custody Rule: Non-DVP Trading and Digital Assets (March 21, 2019)
- Federal Court Reconsiders SEC Application for Preliminary Injunction, Enjoins Blockvest IPO (February 26, 2019)
- UK FCA Issues Consultation Paper on Draft Regulatory Guidance on Cryptoasset Categorisation (February 12, 2019)
- Pennsylvania Regulator Deems Virtual Currency Trading Platforms are not Money Transmitters (February 4, 2019)
- US Blockchain Enforcement and Litigation Update (January 31, 2019)
- CFTC Requests Information Regarding Virtual Currency Ether, Possibly in Connection with Evaluating Potential Derivatives Contracts (January 15, 2019)
- Bill Introduced to Exempt “digital tokens” from the Federal Securities Laws; Change Tax Treatment of Virtual Currencies (December 28, 2018)
- Crypto Never Sleeps: Vigilance Required in OFAC Sanctions Compliance Involving Virtual Currencies and Digital Assets (December 17, 2017)
- First Federal Court Decision Suggesting that ICO May Not be a Security (December 11, 2018)
- SEC Staff Releases Statement on Digital Asset Securities Issuance and Trading and Provides Guidance on Resolving Unregistered ICOs (December 5, 2018)
- UK's Cryptoassets Task Force Delivers Latest Report - Consultations Pending But No Bans Yet (November 20, 2018)
- EU Focus on Blockchain Regulation Gaining Momentum (November 19, 2018)
- SEC Launches FinHub to Connect with Public and Industry on FinTech Matters (October 26, 2018)
- California Defines “Blockchain” and Establishes Working Group to Evaluate its Use (October 19, 2018)
- Blockchain and Digital Currencies Supported by Congressman, SEC Commissioner (October 16, 2018)
- All Virtual Currencies Are Subject to CFTC Anti-Fraud Jurisdiction, Yet Another Federal Court Concludes (October 12, 2018)
- New UK Sheriff for "Wild West" Crypto-Assets? (October 10, 2018)
- NFA Publishes New Disclosure Requirements for Virtual Currency and Virtual Currency Derivatives Trading (August 21, 2018)
- SEC Again Rejects Winklevoss Proposal for Bitcoin Exchange-Traded Product (August 7, 2018)
- US Blockchain Enforcement and Litigation Update (June 27, 2018)
- Irish Revenue Commissioners Issue Guidance Manual on the Taxation of Cryptocurrencies (June 26, 2018)
- SEC Division of Corporation Finance Director Discusses Digital Assets, Opines That Ether and Bitcoin Are Not Securities (June 18, 2018)
- Chinese President Xi Jinping Endorses Blockchain in Recent Speech (June 14, 2018)
- SEC Softening Stance on Cryptocurrency? (May 31, 2018)
- NASAA Announces Results of “Operation Cryptosweep,” Praised by SEC Chairman (May 25, 2018)
- FCA Publishes Statement on Cryptocurrency Derivatives (May 23, 2018)
- Irish Government Releases Paper on Virtual Currencies and Blockchain Technology (April 5, 2018)
- FinCEN Warns That Virtual Currency Activities Are Subject to Anti-Money Laundering Obligations (April 3, 2018)
- The European Commission Action Plan for FinTech Includes Blockchain Priorities (March 29, 2018)
- House Financial Services Committee Holds Hearing to Discuss Cryptocurrencies, ICOs (March 28, 2018)
- SEC Issues Statement on Potentially Unlawful Online Platforms for Trading Digital Assets (March 27, 2018)
- Federal Court Ruling Recognizes CFTC Jurisdiction over Cryptocurrencies as Commodities (March 23, 2018)
- Wyoming Passes Law Creating New Asset Class for Cryptocurrencies (March 22, 2018)
- SEC Staff Seeks Industry Engagement on Questions Regarding Development of Funds Holding Cryptocurrency-Related Products (January 29, 2018)
- SEC Chairman Issues Major Statement on Cryptocurrency and ICOs (December 20, 2017)
- Bitcoin Futures Trading Commences; Implications for Funds and Registered CPOs and CTAs (December 18, 2017)
- U.S. v. Coinbase: Virtual Currency Holders Not Outside the IRS’s Reach (December 08, 2017)
- CFTC Staff Aligns with SEC Position on Initial Coin Offerings: Tokens May be Commodities (October 20, 2017)
- Global Update: Regulators Focus on Initial Coin Offerings (October 04, 2017)
- Asset Management Regulatory Roundup - September 2017, Issue 6 (September 20, 2017)
- Employers: Are You Ready for a Cyberwar? Attackers Using Ransomware are Saying Show Me Your Bitcoin! (May 22, 2017)
- Dechert Advises GCF on High-Profile Bitcoin Technology Funding (October 15, 2014)
- Cryptoasset fraud: the English court makes pre-emptive remedies available to victims of international fraud (March 22, 2021)
Tune in to our Webinars to Learn More
fintechNEXT: The Institutionalization of Bitcoin: What’s Next (February 24, 2021)
fintechNEXT: The Mainstreaming of Bitcoin - (January 27, 2021)
Private Funds Nuts & Bolts: Crypto Funds 2.0 – Opportunities for Investment Managers in 2021 - (December 9, 2020)