Last week the SEC offered its clearest guidance yet on when blockchain tokens and other digital assets would be classified as “securities” under U.S. securities law and subject to SEC regulation.

Specifically, the SEC’s Strategic Hub for Innovation and Financial Technology (FinHub) issued its first-ever “Framework for ‘Investment Contract’ Analysis of Digital Assets.


Continue Reading

CU Ledger, a consortium of U.S. credit unions, announced on Monday, March 11, that it will work with IBM to develop blockchain solutions to improve services such as identity authentication and know-your-customer (KYC) compliance. CU Ledger also indicated it is looking to blockchain to improve payments and lending.

Marie Wieck, General Manager, IBM Blockchain explained

The Office of Foreign Assets Control (“OFAC”), responsible for enforcing U.S. economic sanctions, has taken its first steps to tackle the exploding use of digital currencies. On March 19, 2018, OFAC released a digital currency-related FAQ indicating that OFAC may include digital currency addresses on its Specially Designated Nationals (“SDN”) list of blocked persons, companies and entities.

In its guidance, OFAC defines digital currency broadly to include “sovereign cryptocurrency, virtual currency (non-fiat), and a digital representation of fiat currency.” This definition covers typical cryptocurrencies (Bitcoin, Litecoin, Ethereum, etc.) and the purportedly oil-backed “petro-gold” token issued by the government of Venezuela.


Continue Reading

The Wall Street Journal reported on Wednesday, February 28, 2017, that the Securities and Exchange Commission (SEC) has issued “scores of subpoenas and information requests to technology companies and advisers” in a sweeping probe of the Initial Coin offering (ICO) and Token Sale industry.

By way of background, ICOs or “Token Sales” typically involve the offer and sale of digital assets utilizing distributed ledger or blockchain technology. According to the report, the SEC is seeking information on the structure of these sales, including pre-sales under the “simple agreements for future tokens” (“SAFT”) framework.


Continue Reading