Digital Assets Download - October 28, 2022

October 28, 2022

Digital Assets Download, Powered by Mayer Brown

Coming soon: All of our blockchain “Lingo” in live-action animation! Until then, check out the latest in digital assets with this newly minted edition of Digital Assets Download, Powered by Mayer Brown.

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. Check out all of our previous editions of the Digital Assets Download here.

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

A Call For A More Nuanced Take on US Digital Asset Regulation

In this piece by Mayer Brown partner Joe Castelluccio, he describes how the current approach to regulating digital assets employed by US regulators fails its regulatory goals and stifles innovation. Instead, he argues, legislators and regulators should focus on the ways in which most blockchains are used and make more nuanced distinctions between different types of digital assets.

The FSB Proposes Global Framework for Crypto-Assets

The Financial Stability Board (“FSB”) – an international body that monitors the global financial system – released a framework intended to strengthen the international regulation of crypto-asset activities and global stablecoin arrangements. This Legal Update describes the proposals, which signal where global financial regulators perceive the need for regulatory changes to account for digital assets.

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

Jack Dorsey-Backed Decentralized Social Network Bluesky Gets 30,000 Signups – for the Waitlist – in 48 Hours. Read More >>

This Could Be a Black Mirror Episode: What Are Soulbound Tokens? How To Use the Non-Transferable NFT. Read More >>

Israel's Government and Tel Aviv Stock Exchange Preparing to Issue Tokenized Bonds. Read More >>

IRS Expands Key US Tax Language to Include NFTs. Read More >>

Mastercard to Bring Crypto Trading Capabilities to Banks. Read More >>

What Is Private Equity? And How Tokenization May Expand Access to PE. Read More >>

France Approves Its Third-Biggest Bank to Operate Digital Asset Services. Read More >>

South Africa Classifies Crypto Assets as Financial Products. Read More >>

The Only Crypto Story You Need. Read More >>

Hong Kong Plans to Legalize Retail Crypto Trading to Become Hub. Read More >>

EU Puts Bitcoin in Crosshairs With Crypto Energy Labeling Plan. Read More >>

Fidelity to Roll Out Ethereum Trading for Institutions Next Week. Read More >>

Struggling Bitcoin Miners Are Flocking to Maple Finance’s $300M Lending Pool. Read More >>

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

Artificial Intelligence & Financial Services Symposium

Our third Artificial Intelligence & Financial Services Symposium resumed on October 27, 2022. As in 2019, we focused on the legal, contractual and regulatory aspects of using AI to deliver financial services. See the List of Topics Covered >>

GFM Podcast Series: Understanding FinCEN’s New Beneficial Ownership Information Rule

The Financial Crimes Enforcement Network (“FinCEN”) recently published its final beneficial ownership information rule (the “BOI Rule”). The BOI Rule will have a significant impact on a number of businesses, including those in the commercial real estate and structured finance sectors. In an episode of the Global Financial Markets (“GFM”) podcast, Mayer Brown partners Brad Resnikoff and Matt Bisanz discuss the BOI Rule and how to prepare to come into compliance with it. Listen to the Podcast >>

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.

Proof of Stake ("PoS")

Proof of Stake (“PoS”) is the consensus mechanism (see our July 22 Lingo here) used by numerous blockchains that employs staking (see our June 10 Lingo here) to verify transactions. PoS is a widely used alternative to the Proof of Work consensus mechanism (see our October 14 Lingo here). In a PoS blockchain, “validators” contribute – or “stake” – crypto in exchange for the opportunity to validate new transactions and update the blockchain. The blockchain network selects a “winning” validator for each transaction based on the amount and duration of the crypto each validator has in the pool. Other validators then attest to the validity of the transaction/block, the network updates the blockchain and the participating validators receive a reward in the blockchain’s native cryptocurrency.

How can we better serve as your oracle to the digital assets world? We’d love to hear from you.

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