Polsinelli BitBlog | FinTech

The convergence of the financial services industry and transformative technologies, commonly known as FinTech, is reshaping the industry. Within this intersection of innovation, Polsinelli’s BitBlog serves a resource for individuals and firms in the developing FinTech industry. Our FinTech and Regulation attorneys provide readers with a broad range of content and a unique perspective on the global FinTech landscape. 

For more information visit Polsinelli's FinTech and Regulation practice page.

 

Continued SEC Enforcement in Digital Token Industry Likely Foretells Increase in Private Claims

Continued SEC Enforcement in Digital Token Industry Likely Foretells Increase in Private Claims

By: Thomas Wagner

On November 8, 2018, the SEC announced it had settled charges against Zachary Coburn, the founder of EtherDelta, a digital “token” trading platform. The SEC noted that its claims against Coburn were the first by the agency “based on findings that such a platform operated as an unregistered national securities exchange.” The settlement with Coburn comes a few weeks after the SEC announced it had issued cease and desist orders to a hedge fund manager, Crypto Asset Management LP (“CAM”), its principal, Timothy Enneking, and a self-proclaimed “ICO Superstore” named TokenLot LLC, and TokenLot’s principals.

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SEC Charges EtherDelta Founder With Operating an Unregistered Exchange

SEC Charges EtherDelta Founder With Operating an Unregistered Exchange

By: Robert W. Wenner

On November 11, 2018, the SEC charged EtherDelta, an online platform for secondary market trading of ERC20 tokens, with operating an unregistered national securities exchange. This order represents a significant step forward in the SEC’s enforcement efforts in the digital asset space as the agency’s first action against an entity operating as a securities exchange.

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SEC Charges ICO Token Offering Platform as an Unregistered Broker-Dealer

SEC Charges ICO Token Offering Platform as an Unregistered Broker-Dealer

By: Peter F. Waltz and Richard B. Levin

On Sept. 11, 2018, the SEC filed an enforcement action against an online platform TokenLot that bought and sold digital assets and facilitated their sale alleging that TokenLot operated as an unregistered broker-dealer.  TokenLot described itself as an ICO superstore and operated a platform where retail investors could purchase digital tokens during and after an ICO. 

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SEC Launches New Strategic Hub for Innovation and Financial Technology

SEC Launches New Strategic Hub for Innovation and Financial Technology

By: Richard B. Levin, Peter F. Waltz and Robert W. Wenner

A great step by the SEC to help guide the industry and the public through the issues associated with the development of FinTech,” notes Richard Levin.

 The U.S. Securities and Exchange Commission today announced the launch of the agency's Strategic Hub for Innovation and Financial Technology (FinHub). 

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SEC Stops Fraudulent ICO That Falsely Claimed SEC Approval

SEC Stops Fraudulent ICO That Falsely Claimed SEC Approval

By: Richard B. Levin and Paul J. Roshka

The Securities and Exchange Commission (“SEC”) recently announced that it has obtained an emergency court order halting a planned initial coin offering (“ICO”), which falsely claimed was approved by the SEC. The order also halted ongoing pre-ICO sales by the company, Blockvest LLC and its founder, Reginald Buddy Ringgold, III.

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Court Denies Defendants’ Motion to Dismiss in Commodity Fraud Case Involving the Virtual Currency My Big Coin

Court Denies Defendants’ Motion to Dismiss in Commodity Fraud Case Involving the Virtual Currency My Big Coin

By: Richard B. Levin and Paul J. Roshka

On September 26, 2018, Senior Judge Rya W. Zobel of the U.S. District Court for the District of Massachusetts, entered an order holding that the Commodity Futures Trading Commission (CFTC) has the power to initiate enforcement actions involving virtual currencies and denying the defendants’ motion to dismiss the CFTC’s amended complaint. 

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Crypto-assets Do Not Pose a Material Risk to Global Financial Stability

Crypto-assets Do Not Pose a Material Risk to Global Financial Stability

By: Richard B. Levin

The Financial Stability Board (FSB) noted in a recently published report:

Based on the available information, crypto-assets do not pose a material risk to global financial stability at this time. However, vigilant monitoring is needed in light of the speed of market developments ...

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SEC Charges Bitcoin-Funded Securities Dealer and CEO

SEC Charges Bitcoin-Funded Securities Dealer and CEO

By: Richard B. Levin

September 2018

The Securities and Exchange Commission (“SEC”) recently filed charges against an international securities dealer and its Austria-based CEO for allegedly violating the federal securities laws in connection with security-based swaps funded with bitcoins. 

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