Going forward, it looks like crypto companies that make it in New York will be able to make it anywhere. All over, at the state and federal level and internationally, turmoil in the crypto industry is leading to increased scrutiny. In New York, home of the comprehensive (some would say onerous) BitLicense, cryptocurrency mining has been partially banned and the New York State Department of...
When the history books are written, it may be said that the biggest event to shake the crypto world was not the crypto bankruptcies of 2022, but rather, the clawback of billions of dollars in crypto value in those bankruptcies. Since summer 2022, five major crypto companies have filed bankruptcy: a hedge fund (Three Arrows Capital), two lenders (Celsius and BlockFi), a broker (Voyager), and an...
As we learn more about FTX’s operations, speculation is slowly giving way to certainty. It’s clear FTX’s collapse will have a deep impact on the future of regulations, its bankruptcy will help create the blueprint for clawbacks in the crypto space, and potential tensions between the trustee and foreign liquidators could forge new jurisdictional law.
The course of regulatory reform in the U.S. related to digital assets is likely about to change as a result of the allegations against Sam Bankman-Fried and FTX affiliated entities in bankruptcy. Prior to FTX’s bankruptcy, and with Bankman’s support, the industry was gaining traction in promoting its own views regarding needed safeguards, including oversight and enforcement by the Commodity...
“Winter is coming. We know what’s coming with it." — Jon Snow, Game of Thrones, A Song of Ice and Fire
In recent months, SEC Chair Gary Gensler has referred (on more than one occasion) to crypto as the “Wild West.” As cliché as that may sound, the shoe, or boot, seems to fit quite well. Similar to the aggressive expansion westward in the 1800s that shaped the nation, crypto is a magnet for exploratory investors (as evidenced by a growing total market value of over $3 trillion) and has an...
Making order out of a multiverse is an extraordinarily difficult task, just ask DC Comics, which has struggled to achieve the success of its rival, Marvel, to create a coherent narrative for its popular superheroes. Regulators in Washington, D.C. and elsewhere must do better if they hope to create a comprehensive regulatory framework for an ever-expanding multiverse of digital coins and digital...
