Cryptocurrency In A Declining Market: What Lawyers Need To Know About Bankruptcy, Regulation, And Other Trends


bitcoin-g24486d3f2_1920Like any other investment, cryptocurrency can be exciting and rewarding when the market is up, and when it cools down, investors, funds, and the lawyers advising them can face tough questions.

As noted in a recent report by the Practicing Law Institute, Cryptocurrency and bankruptcy: what lawyers need to know now that “crypto winter” is herecrypto is not immune from the effects of a declining market, nor from bankruptcy and its related laws.

During the information-packed hour-long briefing, presenter Noah Schottenstein, from DLA Piper, guides attendees through the basics of the crypto finance market, defining its unique features compared to traditional finance. He continues to explore novel legal issues that bankruptcy courts are only just beginning to address.

As Schottenstein explained, the “crypto winter” that began earlier this year was associated with the fall of the Terra/Luna cryptocurrencies. The dramatic downturn in the cryptocurrency market eventually saw high-profile bankruptcy filings, including hedge fund Three Arrows Capital and retail-focused cryptocurrency platforms Voyager and Celsius.

The Report goes on to discuss topics such as the application of avoidance actions to cryptocurrency transactions, the types of claims and protections that retail “depositors” and other counterparties may have in bankruptcy proceedings, and the overlap between the structures. regulatory and bankruptcy law.

In-house counsel, outside counsel, and compliance, finance, and other allied professionals interested in the structure of cryptocurrency financial markets and bankruptcy law can get up to speed with this program and learn why the expectations around the The impact of bankruptcy may be altered in this evolving landscape.

Crypto and Securities Regulation

The bankruptcy program comes at a time when the intersection of regulations and cryptocurrencies is an increasingly hot topic. A The SEC speaks in 2022filed by PLI with the SEC in Washington, DC on September 8-9, the main topic was “crypto, crypto, crypto,” said Kurt Wolfe, co-host of PLI’s inSecurities podcast, in an episode about the conference. “All the panels I attended talked about crypto, even some of the ones you wouldn’t think of, like trading and markets,” she said.

Wolfe and co-host Chris Ekimoff discussed the importance of Chairman Gensler opening remarks by The SEC speaks, entitled “Kennedy and Crypto”. In his speech, the president stated: “Nothing about crypto markets is inconsistent with securities laws. Investor protection is equally relevant, regardless of the underlying technologies.”

Interested in learning more?

PLI offers a wealth of resources on cryptocurrencies.

If you want to brush up on the basics, check out the one-day program. Think Like a Lawyer, Talk Like a Geek 2022: Become Tech Fluentwhich will take place via live webcast and in person on October 14. This unique program is designed to give lawyers the necessary background to become more informed advocates in technology-related matters and understand emerging trends in this field, including blockchain, cryptocurrencies, and NFTs. .

For those interested in diving into the growing crypto trend of DAOs, or decentralized autonomous organizations, PLI will offer Decentralized Automated Organizations (DAOs): Practical Applications and Legal Framework. Sign up for the one-hour briefing on November 16 to learn how DAOs have the potential to disrupt the traditional economic system as they become active investors and lenders, while raising important issues of securities, tax and corporate law. .

See additional crypto related content at PLI’s website.

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The Practicing Law Institute is a nonprofit learning organization dedicated to keeping attorneys and other professionals at the forefront of knowledge and expertise. PLI is chartered by the Regents of the State University of New York and was founded in 1933 by Harold P. Seligson. The organization offers the highest quality, accredited continuing legal and professional education programs in a variety of formats that are delivered by more than 4,000 volunteer faculty, including leading lawyers, judges, investment bankers, accountants, corporate advisors and government regulators. International and US PLI publishes a comprehensive library of tracts, course manuals, answer books, and journals, also available through the PLI PLUS online platform. The essence of PLI’s mission is its commitment to the pro bono community. View Upcoming PLI Programs here.