We have previously discussed the position taken by the U.S. SEC with respect to cryptocurrencies. But the US Commodity Futures Trading Commission (CFTC) also has a role to play. On September 17, 2015, the CFTC brought its first cryptocurrency action against an unregistered Bitcoin trading platform. Coinflip, Inc. d/b/a Derivabit (Coinflip) and its chief executive officer Francisco Riordan were charged operating a facility for the trading or processing of commodity options (offering to connect buyers and…
UBIA is a Hong Kong company that focuses on the research and application of blockchain technology, with a focus on the IOT. The U.S. SEC reported that it had temporarily suspended trading in UBIA’s tock through January 22, 2018. The reason for the suspension is because “of (i) questions regarding the accuracy of assertions, since at least September 2017, by UBIA in filings with the Commission regarding the company’s business operations; and (ii) concerns about…
The Texas State Securities Board said yesterday that it entered an Emergency Cease and Desist Order to halt the multiple investment programs operated by BitConnect, an overseas company that claims a market share of $4.1 billion for its cryptocurrency coins. BitConnect’s investor solicitations promise returns of over 100 percent, the TSSB said, for BitConnect’s own proprietary cryptocurrency, called BitConnect Coins, or BCC. The enforcement action follows BitConnect’s recent announcement that it would hold an ICO…
One of the big questions surrounding ICOs is whether the “coin” (or token) offered in the ICO is considered a security and, therefore, subject to securities laws, including registration. One of the U.S. SEC’s first official statements on the matter, issued in response to the DAO debacle, was probably most famous for its lack of definitive statements. It said that:
[F]ederal securities law may apply to various activities, including distributed ledger technology, depending on the particular facts and circumstances, without regard to the form of the organization or technology used to effectuate a particular offer or sale