Digital Assets Download:Don't Read This Memo. Don't read this memo if you're looking for speculation on political appointments or the day-to-day pronouncements from the incoming Trump Administration. You can get all of that through your X feed or the mainstream media.
Don't read this memo if you're looking for a summary of proposed crypto legislation in Congress. That's been extensively covered elsewhere (including by us), and there are a lot of directions new legislation may go.
Throughout the past three years and all 38 editions of the Digital Assets Download, our guiding principle has always been providing unique insights and commentary in the digital assets sector.
So, in this edition, we won't tell you about things you can read elsewhere. We will tell you about a few under-the-radar areas that will be increasingly relevant for digital assets products and services as growth and market adoption accelerate.
For example, our lead piece describes one regulatory hurdle in the digital asset sector that will remain in place, regardless of presidential or congressional action. Here's a hint: don't sleep on the states.
In addition, the rising popularity of smart contracts raises the
question of not whether disputes will
arise from their use but, rather, how
breaches of smart contracts will be resolved. Our team takes a look
at the types of disputes that can arise under smart contracts and
explores the role of arbitration in resolving these
disputes.
For the Uninitiated:Digital Assets Download is a curated mix of insights and headlines that provide a Layer 3 Legal Perspective" on the digital assets multiverse—created by Mayer Brown's global Digital Assets, Blockchain & Cryptocurrency group.
The Lead Block
Perspectives and insights from Mayer Brown lawyers and other thought leaders that touch on digital assets, decentralized finance, cryptocurrencies and related fields.
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The Race to Develop Crypto Products Is Now a Sprint, But Hurdles Remain: State Law Considerations in the New Crypto World Order
The outcome of the US presidential election this month, coupled with the prospect of a crypto-friendly president and Congress, have unleashed a torrent of enthusiasm that has been building throughout the crypto sector this year. However, while crypto regulatory reform at the federal level has been the focus of most of the crypto sector's attention, most financial services activity in the United States is also regulated at the state level. The authors discuss the role that state law and regulators will continue to play in digital asset products and markets.
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From Code to Court and Beyond: Alternative Dispute Resolution On and Off the Blockchain
The growth of smart contracts raises the question of not whether disputes will arise from their use but, rather, how breaches of smart contracts will be resolved. In the lead article of the next edition of the American Arbitration Association's Dispute Resolution Journal, our team surveys the types of disputes that arise under smart contracts and explores the role of arbitration in resolving smart contract disputes in the United States.
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SEC Division of Examinations Announces 2025 Exam Priorities
On October 21, 2024, the Division of Examinations (EXAMS) of the US Securities and Exchange Commission (SEC) released its examination priorities for fiscal year 2025 (which started October 1, 2024). Reflecting the ongoing interest by the SEC and its staff on crypto assets, EXAMS will continue to monitor and, when appropriate, conduct examinations of registrants offering crypto asset-related services.
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Key Forthcoming EU legislation on Cybersecurity, Artificial Intelligence, Data, and Digital Markets
Cybersecurity, artificial intelligence, data, and digital markets have been in the focus of the EU legislator, with several new pieces of legislation that will affect businesses in a wide range of sectors. All of these developments have extraterritorial effects and apply to any entity offering relevant services or goods in the EU, regardless of their place of establishment. Another common ground are high fines for non-compliance. We outline the scope, key obligations, and timetable for application of six pieces of EU legislation.
Read More
News Node
SEC Chair Gary Gensler to step down
SEC Commissioner Lizárraga resigns from the SEC
Bitcoin ETFs Net Value Reaches $107 Billion
First Defined Benefit Bitcoin Stake from British Pension Specialist – Are Workplace Savings Next?
NY Prosecutor Suggests Office Will Scale Back Crypto Cases
Crypto Platforms Partner to Introduce Global Dollar Network
Investment Bank to Spin out Crypto Platform: Report
Bitcoin ETF Options Coming 'Soon' Following CFTC Clearance
BRICS Digital Asset Platform Proposal Poised to Reshape Global Investment
Crypto Comes to Detroit: Residents Will Soon Pay Taxes with Digital Assets
Singapore's Largest Bank Rolls out Token Services for Blockchain-Enabled Banking for Institutions
Crypto Platform Launches 'Coin50' Index as Crypto Equivalent to S&P 500 and a Balance to Bitcoin
3 Central Banks Forge New Path in Cross-Border Digital Asset Innovation
Fund Tokenization: How Close to the Next Financial Revolution?
Bahrain-Backed Bank Launches Digital Asset Custody Service
Chinese Nationals Gain Access to Stablecoins in Hong Kong Via Technology Trial
Global Bank, Investment Management Company Unveil Proposal for On-Chain Fund With Real-Time FX Swaps
UK Lords Echo Support for Digital Assets Property Bill
Crypto firms including Robinhood, Kraken launch global stablecoin network
Select Events
CFTC Global Markets Advisory Committee Meets
On November 21, the Global Markets Advisory Committee (GMAC) heard a presentation by the Tokenized Collateral workstream of the GMAC's Digital Asset Markets Subcommittee on expanding use of non-cash collateral through use of distributed ledger technology and considered a recommendation from the subcommittee. The meeting included a presentation by the Utility Tokens workstream of the Digital Asset Markets Subcommittee summarizing their work to-date on defining utility tokens and developing guidance for market participants.
IIF Special Session on AI, Financial Stability, and Digital Trust
On October 25, the IIF hosted a Special Session, which featured leaders from government and academia, as well as international financial institutions and organizations, for a discussion on the impact and assessment of AI with respect to financial markets.
Mayer Brown's Joe Castelluccio Discusses the Impact of the US Election on Digital Assets
On November 8, Mayer Brown's Joe Castelluccio spoke with Fintech.TV about some early takeaways for digital assets markets from the results of the US elections and how the elections could impact the prospects for crypto legislation in the next Congress.
LEARN THE LINGO
For those new to the digital assets and DeFi world, each edition of the Digital Assets Download will highlight a different term to help you be a part of the conversation.
ATOMIC SETTLEMENT
An atomic settlement is the instant and simultaneous completion of a series of transactions. It's often used in the context of cross-currency payments or transfers of assets such as securities. A key feature of an atomic settlement is that no transaction in the series can be completed unless all are completed at the same time. In other words, either all transactions occur or none occurs. The purpose of making a transaction settlement "atomic" is to prevent different transactions from interfering with one another.
The ability to use atomic settlements is one of the key potential benefits to using distributed ledger technology to execute transactions with costs and in time periods that are significantly lower and shorter than currently required. As one example, the New York Federal Reserve's "Project Cedar" tested the viability of atomic settlements of cross-border payments in illiquid currency corridors. In those tests, the settlement time for these payments was reduced from two days to 10 seconds. (The full report on Project Cedar is available on the New York Fed's website.)
Writing on the Wall, Translating 'Crypto' Terms with Mayer Brown
From Airdrop to Wrapped Token, our illustrated glossary, "Writing on the Wall, Translating Securities with Mayer Brown," has been updated with additional digital assets and cryptocurrency terms. Check out our "featured" list for the crypto terms and the full list of terms.
Digital Assets Download
View previous editions and additional content in our Digital Assets Download Resource Center.
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This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.
