Understanding Stablecoins

With stablecoins like Tether and Gemini making news recently, it is worth exploring what the term “stablecoin” means, and how it might impact businesses and consumers in the coming years. For starters, a stablecoin is a type of cryptocurrency that is designed to mitigate the short-term volatility that most cryptocurrencies are known for. Stablecoins are … Continue reading Understanding Stablecoins

CFTC Warns Investors: Use Caution When Buying Digital Tokens

Thinking about buying what’s known as a “utility token” or a “consumption coin”? Think twice, says the Commodity Futures Trading Commission (CFTC). In a customer advisory issued last week, the derivatives regulator urged potential investors to do their due diligence before making a purchase. As we’ve discussed on the Blockchain + the Law blog, digital … Continue reading CFTC Warns Investors: Use Caution When Buying Digital Tokens

Regulator Nodes and the Future of Swap Regulation from #Cryptodad

Last week, Commodity Futures Trading Commission (CFTC) Chairman Christopher Giancarlo and CFTC Chief Economist Bruce Tuckman published a white paper  analyzing the state of post-Dodd-Frank swaps regulation, making a number of recommendations for “Swaps Regulation 2.0.”  Giancarlo announced the publication in a fireside chat  at the International Swaps and Derivatives Association (ISDA) annual conference in … Continue reading Regulator Nodes and the Future of Swap Regulation from #Cryptodad

CFTC Proposes “Actual Delivery” Definition with Big Implications for Bitcoin Regulation

Just before the close of 2017, the Commodity Futures Trade Commission (CFTC) proposed a seemingly esoteric new rule, in which the CFTC attempted to define the term “actual delivery” within the context of retail commodity transactions in virtual currency.  Let’s unpack this because while it may seem to be an obscure topic, once final, this … Continue reading CFTC Proposes “Actual Delivery” Definition with Big Implications for Bitcoin Regulation

Senate Banking, Housing, and Urban Affairs Committee Hearing: Virtual Currencies, SEC and CFTC Oversight

Overview: The Senate Committee on Banking, Housing, and Urban Affairs held a hearing pertaining to virtual currencies and oversight of the Securities and Exchange Commission and the Commodity Futures Trading Commission on February 6, 2018. The hearing shed some light on the potential future path for U.S. regulation of cryptocurrencies and highlighted many issues that crypto … Continue reading Senate Banking, Housing, and Urban Affairs Committee Hearing: Virtual Currencies, SEC and CFTC Oversight

CFTC Draws Jurisdictional Boundaries on Bitcoin

We know that the Commodity Futures Trading Commission (CFTC) considers virtual currencies, including bitcoin, to be commodities, meaning that they are subject to the CFTC’s oversight.  And we know, based on recent statements and enforcement actions, that the CFTC is, in fact, paying close scrutiny to cryptocurrency transactions and the exchanges on which they are … Continue reading CFTC Draws Jurisdictional Boundaries on Bitcoin

LedgerX and CME Launch First Bitcoin Futures Products

As a commodity with wide price fluctuations, bitcoin-based derivatives were perhaps inevitable – offering investors opportunities to hedge against or capitalize on the digital currency’s price volatility.  And in fact, bitcoin derivatives are starting to take off.  CME, the world’s largest futures exchange, announced that it will launch a bitcoin futures product, to go live … Continue reading LedgerX and CME Launch First Bitcoin Futures Products