Overview
(March 1, 2018, Washington, DC) — Steptoe’s Blockchain and Digital Currency practice authored a special report on blockchain, cryptocurrency, and investigations that was published in the February/March edition of Thomson Reuters’ Practical Law The Journal. The report, titled “Blockchain Technology & Regulatory Investigations,” offers advice for companies and counsel on how to respond to a regulatory investigation involving cryptocurrency, other types of crypto-assets, and blockchain technology generally. The report was authored by Steptoe partner Michael Rennock, of counsel Alan Cohn, and associate Jared Butcher.
As blockchain technology becomes embedded in finance and the financial services industry (among others), cryptocurrencies gain prevalence, and the potential for additional blockchain applications continues to grow, industry participants are likely to face heightened regulatory scrutiny and potentially investigations and enforcement actions, including by the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), FINRA, the Internal Revenue Service (IRS), the Financial Crimes Enforcement Network (FinCEN), the Office of Foreign Asset Control (OFAC), the FBI, and state regulators as well. The article analyzes the current state of play across all of these agencies and offers practical suggestions to in-house counsel and clients.
In addition, the report features a primer on blockchain technology, complete with a visual representation diagram, and a “blockchain glossary” of terms.
Steptoe’s Blockchain and Digital Currency practice brings an unparalleled combination of regulation and compliance, financial services, taxation, and law enforcement experience. Over the past four years, Steptoe has advised just about every type of participant in the blockchain ecosystem – including individual and institutional investors, financial institutions, entrepreneurs, early stage companies, cryptocurrency exchanges, and merchants. During this time, Steptoe has helped lead efforts to spread the word about the almost limitless possible applications for blockchain technology.
This practice is led by former Department of Justice (DOJ) Deputy Assistant Attorney General Jason Weinstein, who led the DOJ’s cybercrime and organized crime enforcement efforts, and former Department of Homeland Security (DHS) Assistant Secretary Alan Cohn, who was responsible for strategy and risk assessment, and who established and oversaw the cyber policy office for DHS’s Office of Policy. The group serves as an advisor to both Coin Center and the Chamber of Digital Commerce, two of the industry’s leading advocacy groups, Mr. Weinstein serves on the advisory board of BitFury, and Mr. Cohn serves as an advisor to four blockchain startups. In 2015, Mr. Weinstein was invited to speak at the first-ever “Blockchain Summit” hosted by Sir Richard Branson on Necker Island, and Mr. Cohn attended and spoke at the same event in 2016. Mr. Weinstein and Mr. Cohn are regular speakers on cryptocurrency, blockchain, cybersecurity, and related issues, including at Consensus, the industry’s leading conference, Money20/20, the Aspen Ideas Festival, the RSA Conference, SXSW, and the World Economic Forum Annual Meeting in Davos, Switzerland.
On behalf of the Chamber of Digital Commerce and Coin Center, Steptoe established and administers the Blockchain Alliance, a non-profit organization that creates a forum for the blockchain and cryptocurrency industry to engage with law enforcement and regulatory agencies. Since its launch in 2015, the coalition has rapidly expanded and now is comprised of more than three dozen companies and three dozen law enforcement and regulatory entities around the world. Among other activities, Steptoe and the Blockchain Alliance have conducted educational programs for more than 400 law enforcement officers and regulators from more than 15 countries. Mr. Weinstein serves as director of the alliance and Mr. Cohn serves as counsel.
To keep up with timely blockchain news, follow the Steptoe Blockchain Blog, which features opinions and analysis tracking the trajectory of blockchain technology.
About Steptoe
In more than 100 years of practice, Steptoe has earned an international reputation for vigorous representation of clients before governmental agencies, successful advocacy in litigation and arbitration, and creative and practical advice in structuring business transactions. Steptoe has more than 500 lawyers and other professional staff across offices in Beijing, Brussels, Chicago, London, Los Angeles, New York, Phoenix, San Francisco, and Washington. For more information, visit www.steptoe.com.