When it comes to crypto regulation, the United States is falling further behind more progressive and visionary nations. 2020 has been a stellar year for the crypto economy, with more enterprises and institutions than ever before implementing the technology. Big announcements, such as PayPal’s decision to enable its users to buy and sell Bitcoin (BTC), […]
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Blockstack’s ecosystem has exceeded the firm that gave it life, argues CEO. You could argue that the crypto industry should be crowdsourcing Blockstack’s legal expenses. Blockstack’s trailblazing work with the Securities and Exchange Commission on the initial coin offering (ICO) for its native Stacks (STX) tokens made headlines in mid-2019. On Monday, Cointelegraph reported on […]
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Do the new safe harbors against integration pave the way for a successful SAFT process? Earlier this year, the United States Securities and Exchange Commission — in both the SEC versus Telegram and SEC versus Kik cases — vigorously argued that sales of contractual rights to acquire tokens on a when-issued basis (widely referred to […]
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SEC v. Kik doesn’t have to be game-over for Kik or SAFTs. In fact, the decision is perhaps more favorable than the SEC v. Telegram order. On the last day of September 2020, Judge Alvin K. Hellerstein dashed the hopes of Kik Interactive, crypto entrepreneurs and Simple Agreement for Future Tokens, or SAFT, proponents in […]
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Addressing the legitimacy of collapsing the sale of contractual rights with the eventual release of crypto assets. As discussed in the previous article, Telegram is a popular global instant messaging company. In 2018, it sold contractual rights to acquire a new crypto asset that it was developing (to be called Grams) to a group of […]
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The legal battle between the U.S. SEC and Telegram could be a strong warning against the SAFT process. Telegram is a popular, global, cloud-based instant messaging, videotelephone and voice-over service company. Particularly popular with crypto-enthusiasts, at the end of 2017, Telegram came up with a plan to raise funds to support the development of a […]
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Sworn in for her second term today, SEC Commissioner Hester Peirce tells Cointelegraph about the commission’s work on crypto and new tech in investing. Most days, there is little love lost between the United States Securities and Exchange Commission and the world of crypto. As the regulator of the world’s largest capital market, the commission’s […]
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A community governed DeFi project sets a new standard for crowdfunding. Mantra Dao, a community-governed Decentralized Finance (DeFi) platform with a focus on staking, lending, and governance, has announced it has finished its initial membership offering on August 16. In total, the project has raised $5.9 million. To make the crowdfunding more decentralized and prevent […]
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Part 2 of this series continues to cover the legal implications associated with the sale of SAFTs and focuses on taxes related to tokens. The United States Internal Revenue Service and Treasury Department have published minimal guidance on the tax treatment of virtual currency and no guidance on Simple Agreement for Future Tokens or secondary […]
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Part 1 of this series covers the legal implications associated with the sale of SAFTs and different approaches to legal interpretations of tokens. The enfant terrible of the digital token world, the Simple Agreement for Future Tokens, or SAFT, continues to grab headlines. In the recent Telegram case, the federal district court for the Southern […]
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