Digital Assets Download, Powered by Mayer Brown

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 and Cryptocurrency group. Enjoy this edition of the Digital Assets Download below and find previous editions here.

Original Mayer Brown content, perspectives and insights from across our global platform that touch on digital assets, decentralized finance, cryptocurrencies and related fields.

US DOJ Continues to Position Itself as Preeminent Global Enforcement Agency for Virtual Currency and Digital Assets

The news about virtual currency-related enforcement activity from the US Department of Justice (DOJ) is coming so fast that it can sometimes feel hard to keep up. This snapshot summarizes DOJ’s recent actions showing its commitment to pursuing crime involving cryptocurrency and digital assets.

Growing Up: Crypto Derivatives

In this piece, members of Mayer Brown’s Derivatives practice look at the International Swaps and Derivatives Association’s (ISDA) take on key legal issues that arise from integrating digital assets (i.e., cryptocurrencies and other assets relying on blockchain or distributed ledger technology) into the legal infrastructure of derivative markets.

Cryptocurrency and Non-Fungible Tokens: NY Tax Considerations for Fund Managers

As cryptocurrencies and digital assets become more widely adopted – and in particular, as major financial institutions have begun working with these assets – New York State (NYS) and New York City (NYC) tax questions have begun to arise for traders and fund managers in NY. In this piece, Mayer Brown lawyers address some NY-specific taxes that are relevant to these sectors as they might apply to cryptocurrencies.

A curated selection of headlines and news from around this multiverse – including deals, developments and other disruptions in DeFi.

The US Treasury Department published new regulations taking effect March 1 that bar crypto exchanges from facilitating transactions for individuals and entities newly added to its Russian sanctions list. Read More >>

In related news, a letter sent by four US senators to US Treasury Secretary Yellen sought information about the Treasury Department’s monitoring and enforcing of sanctions compliance by the cryptocurrency industry and the use of digital assets and alternative payment platforms as a method of hiding cross-border transactions for “nefarious purposes.” Read More >>

Are cryptocurrencies sanction-proof? In the view of one crypto company CEO, there may be greater traceability of crypto and blockchain transactions than one might initially expect. Watch More >>

Commentators have noted that the current geopolitical climate will likely create a renewed push for investment in decentralized ways to store and transfer capital. In particular, entrepreneurs working to build decentralized, permissonless systems will likely see increased attention on – and investments in – these types of projects. Read More >>

Venture capital firm Electric Capital’s new $1 billion fund – focused on investments in web3 infrastructure, DeFi protocols and platforms powered by NFTs and DAOs – joins several recent multibillion-dollar funds focused on these areas that have launched in recent months. Read More >>

Always wanted to own an NFL team but never had quite enough cash to do it? Now you – and thousands (or more) of your closest friends – may have the chance with BuyTheBroncos DAO. Formed by a former Cisco employee, BuyTheBroncos DAO was recently launched to raise money to purchase the Denver Broncos for roughly $4 billion. Read More >>

Selected upcoming events for deeper dives into different parts of the digital assets and DeFi world.

March-June 2022

Surge Protection: Preparing for the Coming Wave of Enforcement Webinar Series. With the change in administration, the US Department of Justice (DOJ) announced in 2021 that a significant increase in corporate enforcement is coming. This policy shift is expected to add substantially to the burdens companies and executives under investigation may face, especially when coupled with additional announcements that the DOJ will surge resources dedicated to corporate enforcement. Mayer Brown has prepared a series of webinars which will include leading practitioners, in-house counsel and former government officials across practices to provide practical guidance and insight into how companies can prepare for these changes. The series will cover a wide range of topics including cryptocurrency; the Foreign Corrupt Practices Act; securities; anti-money laundering; sanctions and export control; cybersecurity; and antitrust issues.

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.

Liquidity pools: Liquidity pools are a feature of DEXs (decentralized autonomous exchanges used to trade cryptocurrencies and tokens) that allow people to trade on or between DEXs without any middlemen. Liquidity pools are a mechanism by which users pool their assets in a DEX’s smart contracts to provide asset liquidity for traders to swap between cryptocurrencies. Liquidity pools incentivize users to provide crypto asset liquidity into these pools by allowing users to receive a share of trading fees and/or earning “rewards” in the form of additional/new tokens. In short, more assets and more liquidity “staked” in a pool generally means faster, easier trading on DEXs.

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