This practice note covers recent market trends in distributed ledger/Blockchain capital funding and regulation. It focuses on the legal framework for capital formation using distributed ledger/Blockchain technology to enable offerings of coins, tokens, and other rights (digital assets) and developments over the past few years.
On Sept. 25, 2020, the SEC issued a No-Action Letter to FINRA, in response to a previously issued Joint Statement by the SEC and FINRA. This No-Action Letter detailed how broker-dealers could operate alternative trading systems that trade digital assets without garnering enforcement action from the SEC for not meeting the custody requirements required under
In response to an increasing number of private and public initiatives to implement global stablecoins, on April 14, 2020, the G20’s Financial Stability Board (FSB) issued a Consultative Document, “Addressing the regulatory, supervisory and oversight challenges raised by ‘global stablecoin’ arrangements.” A “stablecoin” aims to maintain a consistent value relative to a specific asset, pool