Cryptocurrency Markets Quiet for Now, but Catalysts for Moves Loom

Michael Best Partner Evan Strassberg was featured by TheStreet in the article titled, “Cryptocurrency Markets Quiet for Now, but Catalysts for Moves Loom,” where he discussed the crypto market, the recent news from the Securities and Exchange Commission (SEC) regarding Exchange Traded Funds (ETFs), and possibilities to come.

“…[SEC] the dominant US regulatory body that oversees securities regulations — is set to soon respond to a request for a new Bitcoin ETF. And that’s on the heels of the SEC establishing its own office to help new cryptocurrency offerings with compliance issues. Cryptocurrency trading has been quiet in the back half of October as Bitcoin clocked a four-week high of $6,810 last Monday and now stands at around $6,500. On the near horizon is the Nov. 5 deadline for the SEC to respond to the most recent request for a Bitcoin ETF (Exchange Traded Fund). Market makers have been trying to create a way for broader markets to participate in Bitcoin, such as through an ETF, for well over a year.

“…late last week, the SEC launched a division that will make it easy easier for firms to surmount the legal complications of launching Initial Coin Offerings (ICOs) — a controversial crowdfunding method for blockchain-based tech companies. The new Strategic Hub for Innovation and Financial Technology, or FinHub, will serve as a contact point for the SEC to interact directly with developers and entrepreneurs in the cryptocurrency world. Prospective entrants will now be able to ask questions and get further clarity from the SEC before stepping out with a coin offering.”

“Litigation attorneys for ICO entrants see the new division as providing some clarity in a fast-moving market. Said Evan Strassberg, a commercial litigator and Partner at law firm Michael Best & Friedrich LLP: “To the extent the SEC is willing to help prospective digital coin offerers and investors to understand their legal obligations and rights, we view this as a very positive development. Providing greater transparency and legal certainty should aid in the growth of ICOs and the success of this sector.”

Click here to read the full article!

Michael Best has an integrated team that works with clients in the cryptocurrency, ICO, and blockchain space. We assist in securities, investment, Bitcoin and other cryptocurrencies, intellectual property, privacy and cybersecurity, blockchain implementation, and other matters in this space. To visit our website and learn more about our team, click here.

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