crypto assets & blockchain technologyPDF
MSK’s crypto assets and blockchain technology group is a multi-disciplinary department that includes attorneys from our corporate securities, regulatory, intellectual property, real estate, and tax practices. As various regulatory agencies attempt to define or put boundaries on how the technology gets deployed and utilized it’s critical to have access to professionals that will guide your business efficiently.
Investment in blockchain and crypto asset companies continues to accelerate, and raising capital through Initial Coin Offerings (ICOs) is expected to continue its meteoric rise. The challenge in getting transactions like that effectuated is with navigating the questions being posed by various regulatory bodies.
Crypto currency is the most common crypto asset using blockchain technology today, with Bitcoin being the most recognizable name, and that is drawing the attention of different agencies. Is it really a currency? Is it an asset? Are digital tokens just a utility for facilitating a transaction? Is it a security?
Between the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Internal Revenue Service, and the Financial Crimes Enforcement Network, among others, launching a company in this undefined atmosphere is remarkably challenging. We help entrepreneurs, investors, and businesses align with existing regulations, as well as stay informed of the rapidly evolving landscape of new rules.
Blockchain is as disruptive to asset ownership in the digital world as elevators were to the brick and mortar world of urban development. Prior to the invention of this distributed technology platform, any modern digital transaction involving money or assets or valuable item of any kind required a middle man or intermediary. Authenticating transactions and keeping track of records, whether moving money between two people, transferring title on real estate, or confirming someone’s identity, has been done by banks, title companies, the department of motor vehicles and so on. The blockchain offers a platform for peer to peer transactions that is secure and always verifiable.
Blockchain is transforming the internet from a platform that offers a constant view, exchange and communication of information to one that will allow the instant exchange of digital (crypto) assets. The global economy will benefit greatly over time from this new platform. But it’s not without initial consternation from various regulatory bodies, specifically in the United States, in making sure that as blockchain becomes more mainstream that the general public is protected. Crypto assets and the blockchain are being examined by regulatory agencies like the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Internal Revenue Service, the Financial Crimes Enforcement Network, the Department of Justice, a list that is sure to grow, to help define where blockchain fits within society and commerce.
- Preparation of documentation for a dual offering of traditional preferred stock and tokens convertible into such preferred stock for a US company.
- Formation and preparation of documents for a digital asset mining company and a traditional fund that invested into a company relying on the Qualified Opportunity Fund tax breaks.
- Representation of a company building a distributed depositary for digital assets.
- Acting as securities counsel in a Regulation D / Regulation S private placement of tokens of an issuer developing payment systems.
- Formation and preparation of fund documents for a tokenized private equity Cayman Islands fund for non-US investors.
- Creation of parallel traditional and tokenized funds investing in both digital assets and traditional equity.
- Formation and preparation of fund documents for a hedge fund investing in digital assets.
- Formation and preparation of fund documents for a private equity fund investing in digital assets.
- Preparation of fund documents for a traditional Cayman fund that intended to purchase solar power plants for cryptocurrency mining operations.
- Participation in a security token offering of a solar power provider.
- Creation and preparation of documents for a master-series fund investing into various ICO projects.
- Formation of various special purpose vehicles for investment into well-known ICOs.
- Conducting legal due diligence review of prospective token issuers on an ICO platform.
- Bloomberg Law, February 22, 2019
- February 20, 2019
- September 13, 2018
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- Bloomberg Law, February 26, 2019
- Bloomberg Law, February 2019
- The Biederman Blog, December 17, 2018
- Law360, June 21, 2018
- American Banker, March 21, 2018
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