Mayer Brown

March 18, 2022


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 groupEnjoy this edition of the Digital Assets Download (below} and find previous editions here.


The Lead Block

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

White House Executive Order on Digital Assets.  On March 9, 2022, President Biden signed an executive order titled “Ensuring Responsible Development of Digital Assets” (the “Order”). The Order directs a broad range of federal agencies to recommend legislative and regulatory proposals to foster the development of, and address the risks presented by, digital assets and a central bank digital currency. This Legal Update provides an overview of the Order and details on each of the reports to be produced pursuant to it.

Looking to Invest In or Acquire a Digital Assets Business? Watch Where You Step—Realizing Value and Managing Risk. Realizing value and managing risk in investments in and acquisitions of digital assets businesses means understanding several key areas of the target’s business—among them, cybersecurity, data privacy and regulatory positions. As valuations increase and investment capital flows into the digital assets sector, the negative impacts of missteps in these areas have also expanded significantly. In this piece, we examine a few key areas of focus to keep these investments and acquisitions on track.

Decentralized Insurance: Coverage Considerations for DeFi.  Interest in decentralized insurance solutions has increased alongside growth in DeFi generally. Whether these solutaions offer insurance coverage of events in the DeFi ecosystem or insurance policies that are decentralized and blockchain-native, providers will need to ensure that their operations are in compliance with the insurance regulatory regime in the United States. In this Legal Update, we discuss some considerations for structuring an insurance provider’s operations that will apply to providers of coverage to DeFi.



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

With US Federal Rules Unclear, Some States Carve Their Own Path on Cryptocurrencies. Read More >>

EU Advances Proposals for Consumer Protection Rules for Digital Assets Read More >>

US Treasury Launching Cryptocurrency Awareness Program

The Labor Department Wants to Investigate Crypto in Retirement Plans. Read More >>

Japan Sets Penalties on Crypto Exchanges for Violating Russia Sanctions: Report 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.

In this series of webinars, Mayer Brown has organized leading practitioners, in-house counsel and former government officials across practices to provide practical guidance and insight into how companies can prepare for increased corporate enforcement from the US Department of Justice (DOJ). A policy shift that was announced in 2021 is expected to add substantially to the burdens companies and executives under investigation may face.

March 9: Increased Global Coordination and the Convergence of Corruption Money Laundering and National Security Policy (View Recording)

March 30: Investigating Misuse of Cryptocurrency: DOJ and FTC Enforcement Panel

April 13: SEC and CFTC Enforcement Update: Increasing SPAC Enforcement and Litigation Risk and Increased Authority to Seek Disgorgement



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.

Wrapped Token: A cryptocurrency token that is linked to the value of another token on a different blockchain. A Wrapped Token allows the transfer of value or other usage across different blockchains. This allows for crosschain functionality—in other words, interoperability between non-compatible cryptocurrencies and blockchains. This creates additional use cases for the token that is wrapped. For example, a Wrapped Token can be lent or borrowed on its non-native blockchains.

A Wrapped Token can (typically, but not always) be redeemed (or “unwrapped”) for the asset to which it is pegged. Wrapped Tokens typically require a custodian—an entity that holds an equivalent amount of the asset as the wrapped amount. Custodians for this purpose can be a vendor, a multisig wallet, a DAO or a smart contract.

(For more on tokens generally, see the following: Learn the Lingo" in an earlier issue.)



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