Digital Assets Download – Solstice and Signing Off for 2022: One of the world’s oldest holidays, the solstice has always been symbolically important as a turning point in the year. Whether you’re using next week’s solstice to refocus on new projects or renew your efforts in existing ones, you can count on the Digital Assets Download to remain a helpful guide in this space. And since this is our last Digital Assets Download of 2022, our “Lingo” terms below—HODL and WAGMI—reflect both our approach to work in this space and our hopes for the new year. Best wishes everyone!

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.)

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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.

Sample Letter to Companies Regarding Recent Developments in Crypto Asset Markets

Last week, the Staff of the Division of Corporation Finance of the Securities and Exchange Commission provided guidance to reporting companies on the types of disclosures that reporting companies should consider if a filer has been impacted by a bankruptcy or by the financial distress of a crypto asset market participant. In its communication, the Staff noted that these recent events have caused “widespread market disruption.” As a result, companies should evaluate their disclosures in order to provide investors with appropriate, tailored, company-specific discussions of the impact of such events on the company’s business, operations and future operating results. This Legal Update provides more detail on the Staff’s sample comment letter and other key points in the guidance.

EU Markets in Crypto-Assets (MiCA) Regulation Expected to Enter into Force in Early 2023

The much-debated Markets in Crypto-Assets (MiCA) Regulation is expected to enter into force in early 2023. MiCA is intended to close gaps in existing EU financial services legislation by establishing a harmonized set of rules for crypto-assets and related activities and services. This Legal Update discusses MiCA’s scope of application, its obligations for crypto-assets issuers and service providers and their management bodies, and a set of market abuse rules it stipulates.

Stolen Crypto - UK Court of Appeal to Decide “Tulip Case” on Software Developers' Legal Duties to Users

Last week, a two-day hearing concluded on Tulip Trading v Wladimir van der Laan & Ors, a UK case involving stolen bitcoins allegedly worth over £3 billion and having significant implications for millions of crypto-asset investors in the wider crypto and blockchain world and for blockchain developers/engineers. This Legal Update gives the background on this high-profile case and a sense of what may come next as it sits with the UK Court of Appeal.

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

Special guest commentary from our friends at TMI Associates in Japan: Latest Developments of DAOs in Japan (Sendai City's Regulatory Reform Proposal Using the National Strategic Special Zone System)

NY DFS to Banks: Advance Permission Required for Crypto Activity

What Does ChatGPT Think about DeFi?

US Senator Brown on FTX: Crypto Puts Consumers and Our National Security at Risk

99% of People Will Lose Crypto Storing in Self-Custody: Binance CEO Changpeng Zhao

Amid Crypto Turmoil, Hong Kong Debuts First Crypto Futures ETFs

How to Build a Crypto Wallet

Protocol Developer Archblock Aims to Bring US Community Banks to DeFi Through Partnership

UN Taps Stellar Blockchain to Send War-Impacted Ukrainians USDC Stablecoins

UK Regulator Is Firming Up Its Approach to Crypto Oversight

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

Mayer Brown and EmpireDAO Host Web3 Lawyers in New York

On December 7, Mayer Brown and EmpireDAO hosted a Web3 lawyer meetup connecting legal professionals from across the industry and cross-pollinating ideas that will shape the rollout of these technologies in the future. Look for similar events in the new year!

US Senate Committee on Banking, Housing, and Urban Affairs Hearing on “Crypto Crash: Why the FTX Bubble Burst and the Harm to Consumers”

On December 14, the Committee conducted a hearing titled “Crypto Crash: Why the FTX Bubble Burst and the Harm to Consumers.” The witnesses were Professor Hilary J. Allen, American University Washington College of Law; Mr. Kevin O’Leary, Investor; Ms. Jennifer J. Schulp, Director of Financial Regulation Studies, Center for Monetary and Financial Alternatives, Cato Institute; and Mr. Ben McKenzie Schenkkan, Actor and Author. The link above leads to a recording of the hearing.

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.

HODL is an acronym widely used in crypto circles that stands for “Hold On for Dear Life.” Originally a typo in a bitcoin message board posting, crypto enthusiasts have adopted the misspelling as a statement of belief in crypto assets as long-term investments and as an encouragement to others in the face of highly volatile crypto-asset markets.

WAGMI is another acronym widely used in crypto discussions that stands for “We’re All Gonna Make It.” Similar to HODL, WAGMI is often used to reflect positivity and enthusiasm for crypto assets in general and camaraderie with others in the crypto community.

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

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