Blockchain Legal Resource

FinCEN Director Discusses Virtual Currency Reporting Trends

Scott H. Kimpel — Wed, 18 Dec 2019 09:00:01 -0500

On December 10, 2019, FinCEN Director Kenneth Blanco delivered prepared remarks to a banking conference held in Washington, DC. Among topics he discussed were trends in suspicious activity reporting (SARs) since FinCEN published updated guidance on convertible virtual currency (CVC) in May 2019.

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New York Proposes Virtual Currency Guidance

Scott H. Kimpel — Mon, 16 Dec 2019 09:00:02 -0500

On December 11, 2019, the New York Department of Financial Services (DFS) published proposed guidance regarding adoption or listing of virtual currency by holders of a BitLicense. Specifically, under the proposed guidance, DFS seeks comment regarding two proposed changes affecting coin listings, both of which are intended to streamline and expedite the process.

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Swiss Regulator Warns of Blockchain Risks

Scott H. Kimpel — Wed, 11 Dec 2019 09:00:03 -0500

On December 10, 2019, the Swiss Financial Market Supervisory Authority (FINMA) published its inaugural report on market risk in the Swiss economy. The report provides an overview of what FINMA believes are the most important risks currently facing Swiss supervised institutions and describes the resulting focus of its supervisory activity.

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Senior SEC Official Discusses Digital Asset Fund

Scott H. Kimpel — Wed, 04 Dec 2019 09:00:04 -0500

At a mutual fund industry conference held on December 3, 2019, Dalia Blass, director of the Securities and Exchange Commission’s Division of Investment Management, previewed a new structure for registered mutual funds seeking to invest substantially in digital assets and related investments.

In particular, Director Blass indicated that an unnamed registered closed-end interval fund with a bitcoin futures strategy is preparing to launch. As a result of recent industry feedback and engagement, and in response to issues the SEC staff previously identified:

The fund expects to ...

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CFTC Chairman Discusses Digital Assets

Scott H. Kimpel — Thu, 21 Nov 2019 09:00:05 -0500

In a television interview on November 19, 2019, CFTC Chairman Heath Tarbert discussed digital assets and the importance of U.S. leadership in this space. Notably, he stated:

“I want the United States to lead, particularly in the blockchain technology that underlies digital assets… [U]ltimately I could see it overtaking the internet or being effectively parallel to the internet in using a variety of different kinds of transactions, not just the financial system, but in other types of transactions as well… I think whoever ends up leading in this technology will end up writing ...

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Federal Reserve Discusses Global Stablecoins and Financial Stability

Scott H. Kimpel — Wed, 20 Nov 2019 09:00:06 -0500

The Federal Reserve Board’s most recent semi-annual Financial Stability Report, issued November 15, 2019, includes a lengthy discussion of potential systemic risks posed by stablecoins. In the report, the Fed observed that innovations fostering faster, cheaper and more inclusive payments could complement existing payment systems and improve consumer welfare if appropriately designed and regulated. But the Fed also warned that the emergence of global stablecoin payment networks introduces important challenges and risks related to financial stability, monetary policy, money laundering and terrorist financing, and consumer and investor protection.

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United Kingdom Issues Revised Guidance on Taxation of Cryptocurrency

Mon, 11 Nov 2019 09:00:07 -0500

The United Kingdom tax authority, HM Revenue & Customs (HMRC), has issued revised guidance regarding the tax treatment of cryptocurrency.

Separate guidance has been published for individuals on the one hand, and businesses on the other.

The revised guidance represents more of an elaboration of the basic principles set out in prior guidance than any significant change in HMRC’s approach to the taxation of the receipt and disposal of cryptoassets.

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SEC Staff Supports Blockchain Clearance and Settlement Platform

Scott H. Kimpel — Tue, 05 Nov 2019 09:00:08 -0500

On October 28, 2019, staff in the SEC’s Division of Trading and Markets provided a no-action letter to Paxos Trust Company, LLC permitting it to pilot a blockchain-based clearance and settlement platform for a limited number of U.S.-listed equity securities for 24 months. The staff’s action enables the further development and commercialization of a blockchain platform for clearing and settling U.S. securities trades.

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Two Federal Bills Would Regulate Stablecoins

Scott H. Kimpel — Wed, 30 Oct 2019 09:00:09 -0400

In the wake of the recent controversy surrounding the proposed Libra cryptocurrency, two members of Congress have begun circulating draft bills that would tighten federal regulation of certain stablecoins.

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Fed Governor Discusses Digital Currencies

Scott H. Kimpel — Mon, 21 Oct 2019 09:00:10 -0400

A recent speech by Fed Governor Lael Brainard entitled “Digital Currencies, Stablecoins, and the Evolving Payments Landscape” discusses a number of topics of interest to the crypto community, including the development of stablecoins and their potential impact on the global payments system. In particular, Governor Brainard opined that the widespread adoption of stablecoins could have implications for the role of central banks and monetary policy.

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