Long recognized for its work guiding clients in various industries through their most significant regulatory and enforcement challenges, Paul, Weiss is at the forefront in helping financial institutions, fintech companies, investors, media and entertainment clients and technology companies navigate the new world of cryptocurrency and blockchain technology. Our multi-disciplinary team helps clients capitalize on the business opportunities, identify the challenges and mitigate the emerging legal risks of digital assets.
Publications
SEC Enforcement: Year in Review
See Also
- Jessica S. Carey
- Andrew J. Ehrlich
- Roberto Finzi
- Harris Fischman
- Michael E. Gertzman
- Roberto J. Gonzalez
- Michele Hirshman
- Brad S. Karp
- Daniel J. Kramer
- Gregory F. Laufer
- Loretta E. Lynch
- Jane B. O'Brien
- Lorin L. Reisner
- Jeannie S. Rhee
- Audra J. Soloway
- Theodore V. Wells Jr.
- Steven C. Herzog
- Alyson A. Cohen
- Elizabeth Norford
- Griffin Varner
- White Collar & Regulatory Defense
- Securities Litigation
- Litigation
- Financial Institutions
In this year-end review, we highlight important takeaways for business leaders and in-house counsel from the Enforcement Division’s activities in 2021, and assess what the Division’s recent activities indicate about regulatory and enforcement priorities for the year ahead.
» moreClient News
General Atlantic Invests in Digital Asset Trading Technology Company Talos
Paul, Weiss advised General Atlantic as lead investor in a $105 million Series B funding round in Talos, a provider of institutional digital asset trading technology, which values the company at $1.25 billion.
» moreRecent Publications
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Biden Issues Executive Order Instituting a “Whole-of-Government” Approach to Supporting Digital Asset Innovation and Mitigating Its Risks
President Biden has laid out a first-of-its-kind “whole of government” approach to supporting digital asset innovation and mitigating its risks, prompted by the explosive growth of cryptocurrency and blockchain technology.
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Federal Regulators’ Report Recommends Urgent Legislation to Regulate Stablecoins
The federal banking agencies, SEC and CFTC recently issued a report recommending swift legislative action to regulate stablecoins, a type of cryptocurrency. The report urges Congress to regulate stablecoins pegged to fiat currency through a federal prudential framework, which would include limiting issuance, redemption and maintenance of stablecoins to banks. Alternatively, the report urges the Financial Stability Oversight Council (FSOC) to take action absent legislation.
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CFTC and FinCEN Impose $100 Million Penalty on BitMEX
The Commodity Futures Trading Commission and the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) recently announced $100 million in civil penalties against BitMEX, a convertible virtual currency derivatives exchange, for violations of the Currency Exchange Act and the Bank Secrecy Act. This was FinCEN’s first enforcement action against a futures commission merchant.
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Chair Gensler Reaffirms Focus on Crypto Enforcement; SEC Brings Actions Against a DeFi Lender and a Crypto Exchange for Offering Unregistered Securities
SEC Chair Gary Gensler recently reaffirmed the agency’s heightened focus on cryptocurrency. The SEC also announced two enforcement resolutions.
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FinCEN Proposes New Requirements for Reporting and Recordkeeping on Certain Transactions Involving Convertible Virtual Currency and Digital Asset Transactions
The proposed rulemaking would extend Bank Secrecy Act reporting and recordkeeping requirements on financial institutions for certain transactions involving convertible virtual currency or legal tender digital assets.
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The OCC Issues Guidance Confirming that National Banks and Federal Savings Associations May Hold Reserves for Certain Stablecoins
U.S. banks and federal savings associations may accept deposits that serve as reserves for stablecoin backed on a 1:1 basis by a single fiat currency in a hosted wallet.
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VinDAX Is the Seventh Cryptocurrency Exchange Hacked This Year: What Should Investors Be Considering?
On November 5, 2019, Vietnam-based cryptocurrency exchange VinDAX was hacked, losing half a million U.S. dollars’ worth of funds spread across 23 different cryptocurrencies.[1]
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Federal Agencies Issue Joint Statement on AML/CFT Obligations, and IRS Updates Guidance, for Digital Assets
The CFTC, the SEC and FinCen recently issued a joint statement reminding those engaged in activities involving digital assets of their anti-money laundering and counter-terrorist funding obligations under the Bank Secrecy Act.
White Papers
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Cryptocurrencies and Bitcoin
The recent growth of “cryptocurrencies” and “blockchain” technology have led to experimentation across many industries, including finance, media, and healthcare. In this paper, we discuss cryptocurrencies, including how they operate in conjunction with the blockchain, and how Bitcoin, the first major cryptocurrency, compares to traditional, fiat currencies.
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Blockchain and Ethereum
In this paper, we focus on the distributed ledger technology known as the “blockchain,” which many believe is a potentially groundbreaking technology with a multitude of applications outside of cryptocurrencies. We also discuss Ethereum, the most prominent platform for building blockchain-based applications.
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Initial Coin Offerings
In this paper, we examine Initial Coin Offerings and the evolving regulatory landscape governing offerings of virtual currencies.
Client News
BNY Mellon Wins Dismissal of Investor Lawsuit Stemming from Cryptocurrency Scam
Paul, Weiss won the dismissal of a high-stakes investor class action against The Bank of New York Mellon filed in the wake of a pyramid scheme involving purported cryptocurrency OneCoin.
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Our Practice
The exponential growth of Bitcoin and other digital assets and the application of blockchain and distributed ledger technologies across many industries is transforming the digital economy—and prompting new global legal and regulatory scrutiny and potential liability.
Our Team
Our highly regarded, multi-disciplinary team includes lawyers with backgrounds in securities, broker-dealer regulation, commodities regulation, transactional intellectual property and technology, tax, company and fund formation, financing, token fundraising and alternative securities offering options. It also includes members of our preeminent securities litigation, regulatory enforcement, economic sanctions and anti-money laundering, and cybersecurity-focused practices.