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
Latham & Watkins
Mr. Fallon, a former Senior Special Counsel at the SEC, represents clients navigating the intersection of federal... | Read More
Mr. Fallon, a former Senior Special Counsel at the SEC, represents clients navigating the intersection of federal securities laws and innovative financial technologies. He draws on extensive practical legal and regulatory experience to guide companies, investors, intermediaries, and other market participants on securities law compliance obligations and strategic considerations; cryptocurrency-related matters; financings, including smaller public offerings (e.g., Regulation A) and private venture capital and angel rounds; securities law defense in SEC and state agency investigations; emerging company issues; and general corporate matters. While at the SEC, Mr. Fallon served as Special Advisor to the SEC’s General Counsel, Attorney Advisor in the Office of the General Counsel’s General Litigation and Administrative Practice’s group, Senior Counsel in the Office of Small Business Policy in the Division of Corporation Finance, and later Senior Special Counsel to the Director of the Division of Corporation Finance. A recognized leader of the securities law bar, Mr. Fallon routinely works with and advises market participants on the implications of ongoing legislative and regulatory efforts in the financial technology sector. As part of these efforts, he frequently helps formulate policy and engages with policymakers on legislative and regulatory efforts, as well as presents as a thought leader on issues related securities laws and digital assets.
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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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