Cryptocurrency: DOJ's Enforcement Framework and the Current Regulatory Landscape
ICOs and the Howey Test, Custody Issues, Virtual Currency as a Commodity, Regulating Stablecoins
Recording of a 90-minute premium CLE webinar with Q&A
This CLE course will provide an up-to-date look at the current regulatory landscape for cryptocurrency. The panel will discuss what the recently heightened regulatory and enforcement activity by several agencies (SEC, CFTC, DOJ, FinCEN, OCC, state regulators, etc.) means for companies engaged in blockchain ventures supported by cryptocurrency.
Outline
- SEC
- Highlights from an empirical analysis of almost seven years of SEC enforcement on cryptocurrency: milestones and future trends
- Compliant ICOs: an economic analysis of the alternative mechanisms to raise capital
- Impact of recent regulatory changes on the development of ICOs as a capital formation mechanism
- Challenges and risk beyond ICOs and the Howey test: the SEC's approach to broker-dealer custody of digital assets, Bitcoin ETFs, stablecoins, and more
- CFTC
- Highlights from an empirical analysis of CFTC enforcement activities on virtual currencies
- CFTC approach to virtual currencies: virtual currency as a commodity, LabCFTC, robust enforcement, and government-wide coordination
- Other regulatory and enforcement activity
- DOJ's Cryptocurrency Enforcement Framework
- FinCEN: overview of cryptocurrency requirements and 2019 guidance on business models involving convertible virtual currencies
- NASAA and state regulation: virtual currency business models under state law and crypto-sweeps and coordinated investigations
- Other agencies
- Effects of COVID-19 on cryptocurrency activities
Benefits
The panel will review these and other key issues:
- Why does the SEC view most digital tokens as securities and what are the registration requirements?
- When is cryptocurrency viewed as a commodity and what are the ramifications for traders?
- How do the recent amendments to accredited investors and exempt offerings impact capital formation in this space?
- What makes a token a convertible currency and what kinds of FinCEN enforcement actions have resulted?
- What are some of the recent developments in other regulatory areas related to cryptocurrencies (e.g. banking and the OCC)?
- How has the COVID-19 pandemic impacted this space?
Faculty
Zachary Fallon
Partner
Ketsal
Mr. Fallon carries nearly fifteen years of practical legal and regulatory experience advising companies, investors, and... | Read More
Mr. Fallon carries nearly fifteen years of practical legal and regulatory experience advising companies, investors, and market participants regarding their compliance obligations under federal securities laws. His experience spans nine years at the U.S. Securities and Exchange Commission’s (SEC) Division of Corporate Finance and Office of the General Counsel. Among other things, Mr. Fallon served as a special Advisor to the SEC’s General Counsel and later as Senior Special Counsel to Director of the Division of Corporation Finance. Prior to the SEC, he practiced at Latham & Watkins. Mr. Fallon is an expert on the federal securities laws, particularly issues around small company capital formation and various exemptions from registration under the Securities Act of 1933. He helped lead key internal SEC investigations in the wake of the 2008 financial crisis and was key to many of the SEC’s regulatory policy decisions made following adoption of the JOBS Act. Mr. Fallon was the principal drafter of the Regulation A proposing and adopting release (aka Reg A+), as well as the SEC’s proposing release on Intrastate and Regional Crowdfunding exemptions.
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Dr. Simona Mola
Senior Manager
Cornerstone Research
Dr. Mola conducts financial and economic analyses in complex commercial litigation and regulatory proceedings. She... | Read More
Dr. Mola conducts financial and economic analyses in complex commercial litigation and regulatory proceedings. She manages teams to support expert witness testimony in all stages of litigation, including deposition and trial. Across a range of corporate finance and corporate governance matters, she addresses issues that include capital formation, disclosure requirements, financial reporting, and executive compensation. In addition, Dr. Mola has expertise with economic issues involving cryptocurrency, initial coin offerings (ICOs), blockchain use cases, and token economies.
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