This is our sixth monthly bulletin for 2022, aiming to help companies identify important and significant legal developments governing the use and acceptance of blockchain technology, smart contracts and digital assets.
While the use cases for blockchain technology are vast, this bulletin will be primarily on the use of blockchain and or smart contracts in the financial services sector. With respect to digital assets, we have organized our approach to this topic by discussing it in terms of traditional asset type or function (although the types and functions may overlap), that is, digital assets as:
- Securities
- Virtual currencies
- Commodities
- Deposits, accounts, intangibles
- Negotiable instruments
- Electronic chattel paper
- Digitized assets
In addition to reporting on the law and regulation governing blockchain, smart contracts and digital assets, this bulletin will discuss the legal developments supporting the infrastructure and ecosystems that enable the use and acceptance of these new technologies.
INSIGHTS
Bankruptcies begin for crypto firms as “crypto winter” settles in
The recent crash in cryptocurrency prices has erased nearly $2 trillion in market value and forced three large firms into bankruptcy proceedings in the United States Bankruptcy Court for the Southern District of New York (SDNY). These bankruptcy cases will likely present many novel questions related to the status of cryptocurrency under federal and state law. Read more.
Implementation of crypto reporting rules delayed
In November 2021, Congress passed the infrastructure bill containing the so-called “broker rules.” The broker rules require that crypto firms collect customer transaction data and was set to commence in 2023 with full reporting to occur in 2024 (for calendar year 2023). Recently, it has been reported that the IRS is considering a delay in implementing the reporting, although no official statement has been made or confirmed. Read more.
Pennsylvania and Washington enact…
