Congress will be “starting from scratch” in attempting to establish a regulatory framework for stablecoins — an issue that many believe is the top digital asset legislative priority.
On April 15, 2023, the US House...more
The bipartisan bill would provide a federal safe harbor for non-custodial blockchain service providers from state money transmission and digital asset licensing laws.
On March 23, 2023, US House of Representatives...more
3/31/2023
/ Bank Secrecy Act ,
BitLicense ,
Blockchain ,
Cryptoassets ,
Cryptocurrency ,
Custody ,
FATF ,
FinCEN ,
Market Participants ,
Preemption ,
Proposed Legislation
By authorizing the issuance of a stable token, “Blockchain Valley” leads the way in state digital asset adoption and integration.
For the last few years, Wyoming has been a leader among US states at the intersection of...more
The Definitions aim to support the safe and efficient development of the digital asset derivatives market through consistent contractual standards.
On January 26, 2023, the International Swaps and Derivatives...more
The Guidance clarifies the regulator’s expectations on safekeeping customer digital assets, and the disclosures that must accompany such arrangements.
On January 23, 2023, the New York Department of Financial Services...more
2/3/2023
/ Banks ,
BitLicense ,
Cryptoassets ,
Custodians ,
Digital Assets ,
Disclosure Requirements ,
Financial Services Industry ,
Insolvency ,
New Guidance ,
NYDFS ,
Virtual Currency
An in-depth discussion on the impact of counterparty insolvency, negative market conditions on companies, as well as legal rights and remedies companies may have in the current crypto environment.
Topics:
Understanding the...more
The comprehensive framework, which spans multiple reports, aims to spur risk mitigation efforts and potentially a US central bank digital currency.
On September 16, 2022, the White House published a fact sheet described...more
9/30/2022
/ Bank Secrecy Act ,
Biden Administration ,
Central Bank Digital Currency (CBDCs) ,
Cryptocurrency ,
Digital Assets ,
Executive Orders ,
Financial Regulatory Agencies ,
Financial Services Industry ,
Financial Stability Board ,
Financial Transactions ,
FSOC ,
OECD
A new rule removes the requirement to clear IBOR-based swaps and extends mandatory clearing to swaps on IBOR alternatives.
On August 12, 2022, the US Commodity Futures Trading Commission (CFTC) voted to amend its...more
Ethereum’s transition to proof of stake presents opportunities and pitfalls for certain digital assets and tokens built on the network.
After years of development, the Ethereum blockchain appears poised to make its...more
The latest bipartisan crypto bill would give the CFTC new tools and authorities to regulate digital commodities, with a focus on market integrity and consumer protection.
On August 3, 2022, a bipartisan group of US...more
The global central bank cooperative body would bring stablecoins within the international standards for payment, clearing, and settlement systems....more
8/2/2022
/ AML/CFT ,
Bureau of Industry and Security (BIS) ,
Committee on Payments and Market Infrastructure (CPMI) ,
EU ,
Final Guidance ,
Financial Markets ,
Financial Stability Board ,
Hong Kong ,
Information Reports ,
IOSCO ,
Japan ,
Payment Systems ,
Regulatory Agenda ,
Risk Management ,
Stablecoins ,
UK
The CFTC would take center stage in the regulation of spot digital asset markets under Title IV of the RFIA.
Latham & Watkins presents a blog series on the Responsible Financial Innovation Act, which was introduced in...more
The agency will use the information to take further steps to address climate risks in the commodity derivatives markets.
On June 2, 2022, the Commodity Futures Trading Commission (CFTC) issued a Request for Information...more
On March 9, 2022, President Biden issued an Executive Order on Ensuring Responsible Development of Digital Assets (Order). In the face of rapid advancement in blockchain technology and its applications, the Order asserts that...more
Popular and institutional interest in digital assets, decentralized applications, NFTs, and blockchain technology skyrocketed, and regulators sprinted to catch up.
For the digital asset markets, 2021 was a banner year....more
1/25/2022
/ Bitcoin ,
Blockchain ,
Capital Raising ,
Cryptoassets ,
Cryptocurrency ,
Decentralized Finance (DeFi) ,
Digital Assets ,
Enforcement ,
Entrepreneurs ,
Environmental Social & Governance (ESG) ,
Federal Reserve ,
Financial Regulatory Agencies ,
FinCEN ,
Non-Fungible Tokens (NFTs) ,
Regulatory Agenda ,
Securities and Exchange Commission (SEC) ,
Startups ,
Unicorns ,
Venture Capital
The report addresses the market risks and regulatory challenges presented by stablecoins and urges Congress to act quickly.
On November 1, 2021, the President’s Working Group on Financial Markets (PWG) in conjunction...more
11/11/2021
/ Biden Administration ,
CFTC ,
Digital Assets ,
Digital Currency ,
FDIC ,
Financial Markets ,
Financial Services Industry ,
FSB ,
FSOC ,
Information Reports ,
IOSCO ,
OCC ,
Prudential Standards ,
Regulatory Agenda ,
Regulatory Oversight ,
Risk Factors ,
Securities and Exchange Commission (SEC) ,
Stablecoins
An ambitious proposal could bring digital assets into the mainstream regulatory fold. During an eventful summer for the digital assets industry, it may have been easy to miss US Representative Don Beyer’s introduction of the...more
9/13/2021
/ Anti-Money Laundering ,
Bank Secrecy Act ,
Central Bank Digital Currency (CBDCs) ,
CFTC ,
Commodities ,
Cryptoassets ,
Digital Assets ,
Enforcement Authority ,
FDIC ,
Federal Reserve ,
Proposed Legislation ,
Regulatory Oversight ,
Reporting Requirements ,
Securities ,
Securities and Exchange Commission (SEC) ,
Stablecoins ,
U.S. Treasury
As the countdown to the LIBOR sunset enters its final six months, the CFTC staff is trying to help the market transition. With less than six months to go before the London Interbank Offered Rate (LIBOR) expires on December...more
7/23/2021
/ Banking Sector ,
Benchmarks ,
CFTC ,
Derivatives ,
Federal Bank Regulatory Agencies ,
Financial Regulatory Agencies ,
Interest Rate Swaps ,
Interest Rates ,
Libor ,
Secured Overnight Funding Rate (SOFR) ,
Swap Execution Facilities ,
Swaps
A sovereign nation’s decision to adopt Bitcoin as legal tender raises interesting questions — and legal ramifications.
On June 8, 2021, El Salvador’s Legislative Assembly voted to establish Bitcoin as unrestricted legal...more
6/25/2021
/ Article 9 ,
Banking Sector ,
Bitcoin ,
CFTC ,
Commodity Exchange Act (CEA) ,
Cryptocurrency ,
El Salvador ,
Exchange-Traded Products ,
Financial Action Task Force ,
Foreign Currency ,
IRS ,
Money Transfer ,
Multinationals ,
New Legislation ,
Securities and Exchange Commission (SEC) ,
Uniform Commercial Code (UCC)
This Client Alert White Paper serves as a comprehensive guide to the new rule, which largely supersedes prior CFTC guidance that had informed market practice for over seven years.
Key Points:
..The new rule became...more
For market participants pivoting toward ESG and digital assets, weighing the issues at the crossroads of these two megatrends is critical.
The huge rise in popularity of Bitcoin - and the growing interest by mainstream...more
4/13/2021
/ AML/CFT ,
Blockchain ,
Climate Change ,
Corporate Governance ,
Cryptocurrency ,
Decentralized Finance (DeFi) ,
Digital Assets ,
Environmental Social & Governance (ESG) ,
Paris Agreement ,
Popular ,
Risk Management
The CFTC continues to demonstrate a commitment to using its regulatory mandate to combat climate change risks to the US financial system.
On March 17, 2021, the Commodity Futures Trading Commission (CFTC) announced the...more
Throughout 2020, cryptocurrencies experienced incremental progress towards the mainstream as institutional investors and financial institutions made positive statements about the nascent asset class, an increasing number of...more
1/29/2021
/ Anti-Money Laundering ,
Banking Sector ,
Blockchain ,
Cryptocurrency ,
Digital Assets ,
Financial Institutions ,
Financial Regulatory Reform ,
Financial Services Industry ,
FinTech ,
Initial Coin Offering (ICOs) ,
Investment Firms ,
Investors ,
Popular ,
Virtual Currency
Regulators once again offered piecemeal guidance, while focusing on risks and enforcement. Meanwhile, innovation and institutional adoption took off. Last year, Latham & Watkins sounded a hopeful note that 2020 would provide...more
1/22/2021
/ Biden Administration ,
Central Bank Digital Currency (CBDCs) ,
CFTC ,
Digital Assets ,
Enforcement Actions ,
Federal Reserve ,
FinCEN ,
No-Action Letters ,
OCC ,
Popular ,
Regulatory Requirements ,
Safe Harbors ,
Securities and Exchange Commission (SEC) ,
Securities Tokens ,
Token Sales
In a new publication, ISDA explores the benefits of digitization and blockchain solutions for global foreign exchange derivatives markets.
As blockchain and distributed ledger technology (DLT) use cases continue to grow...more