Whether digital assets are securities under Federal securities law or something other than a security, and therefore outside those provisions, is a pressing question. On June 14, 2018, William Hinman, the Director of the Division of Corporation Finance at the Securities and Exchange Commission, provided valuable insights about current staff thinking and offered future guidance for market participants. However, parsing the analysis in respect of a particular digital asset remains a daunting task.
This article addresses the problem of how to separate capital-raising securities from utility tokens. The proposed solution is to use the basic SAFT model, but add a mechanism that extinguishes the capital-raising securities and results in the distribution only of utility tokens.
A US federal appeal court has thrown out a Federal Trade Commission measure ordering cancer diagnostic tester LabMD to overhaul its cybersecurity programme, potentially challenging the FTC’s practice in cybersecurity cases.
The days of the Federal Trade Commission requiring companies to carry out holistic data security overhauls to resolve government probes over privacy lapses are numbered, attorneys said Thursday after the Eleventh Circuit tossed a cease-and-desist order against a defunct cancer-screening lab for being too vague.
As the regulatory environment for blockchain technologies and assets continues to take shape, Murphy & McGonigle’s Blockchain Law Center (www.blockchainlawcenter.com) provides a one-stop destination for the latest legal and regulatory developments in the application of blockchain technology.