CRYPTO-LAW: ENFORCEMENT ACTIONS AND NEW LEGISLATIVE ACTIONS  IN THE U.S. AND ABROAD Unprecedented Enforcement Actions by the SEC The pace of enforcement actions initiated by the SEC against cryptocurrency firms reached unprecedented levels last week with the filing of two significant lawsuits against Binance and Coinbase. In the case of Binance, the charges are more extensive, encompassing allegations of fund commingling and an artificial separation between Binance.com and Binance.us. Both lawsuits share a commonality, namely, the accusation of listing numerous unregistered securitie ..read more

EU Approves Regulatory Framework for Crypto Assets Lawmakers in the European Union have approved two new crypto-related laws. The Markets in Crypto-Assets (MiCA) law requires licensing for crypto wallet providers and exchanges operating in the EU, making it the first major jurisdiction in the world to implement such a comprehensive crypto law. Another law, the Transfer of Funds regulation, mandates crypto operators to identify their customers to prevent money laundering. The votes in favor of these laws were overwhelming, with only a few lawmakers abstaining. The new laws also require issuers ..read more

Hermès is famous for their Birkin handbag, which is expensive and serves as a symbol of wealth. They registered the trademark BIRKIN® with the US Trademark Office, but it only covered tangible handbags and not digital representations. In 2021, an artist named Mason Rothschild created MetaBirkin NFTs, which are digital representations of a unique, fuzzy Birkin handbag. He sold over a million dollars worth of them, but Hermès sued him for trademark infringement, dilution, and cybersquatting. Hermès argued that the MetaBirkin name trades on the goodwill of the Birkin brand and that consumers may ..read more

Six points to Consider before Investing & Trading in Cryptocurrency Throughout the years, SEC Commissioner Hester Pierce earned the nickname “crypto mom,” as one of the staunchest supporters of digital assets. Her recent statements at Duke Conference are particularly meaningful, especially considering the frosty 2022 from which the crypto industry is slowly coming out. Here are the most significant key points of her remarks: 1. In order to foster the longevity of cryptocurrency, those who believe in its potential should not rely solely upon government regulation. Individuals and groups wi ..read more

As widely known, Non-Fungible Tokens (NFTs) are digital assets that register an immutable transaction on the blockchain. However, often it is not very clear what legal rights the purchaser obtains with the digital asset embedded in the NFT.  One of the questions that our clients ask us on a regular basis is what legal rights are transferred with a specific NFT. A very simple answer is that purchasers are  not automatically granted copyrights, and therefore they cannot publicly display, adapt, or reproduce the digital asset purchased, unless consented by the previous owner. The latitu ..read more

A crucial question that often arises in conversations with our clients is whether a digital asset that is being offered or planned to be launched soon will trigger compliance with security laws. The answer to the question typically is based on the analysis as to whether the client will issue a security token or a utility token.  A security token brings the business activities of the issuer under the purview of the Securities Exchange Commission (SEC). US Federal Courts and the SEC still rely on the Supreme Court’s Howey test to deem a token a security when there is an “investment contract ..read more

I am very happy to announce that Cea Legal is launching today an innovative NFT rewards program for its clients. Each client - whether a business or an individual - that spends in a one-time transaction at least $2,500, $5,000, $7,500 or $10,000 in legal fees will receive a Cea Legal NFT, minted on Cea Legal's website and hosted on the Ethereum blockchain. Each NFT will give a predetermined future special benefit in connection with Cea Legal services, as well as embed artwork created by the very talented digital artist Giulia Zoavo. For a description of each Cea Legal NFT category, please visi ..read more

One of the most attractive features of Non-Fungible Tokens (NFTs) is the opening of new revenue streams for artists and creators, thanks to the rolling royalty structure enabled by the NFT technology. Until today, artists and content creators would monetize only on their work’s initial sale. However, since NFTs are registered through smart contracts on a blockchain, the transactions associated to them are public, immutable, and traceable. This means that an artist selling its creations as NFTs (whether exclusively digital or as a digital tag associated to a physical asset) will now have a tool ..read more

The corporate world as we have known for the past several years is about to be shaken by the Web3, which is the latest Internet development empowering its users to transact through decentralized blockchain platforms without the need to rely on Web2 giants (such as Facebook, Youtube, and the likes). Specifically, there is an evident lack of coordination and meaningful communication between companies and several of their contributors (influencers and gig participants, or anyway its contractors). These issues are tackled and expected to be resolved by the rise of Decentralized Autonomous Organiza ..read more

Many still think that Non-Fungible Tokens (NFTs) do not have any practical purpose and are only used as a beauty exercise by trust fund kids and money launderers to purchase digital art or other collectibles. Given the novelty and complexity of the subject, this is an understandable misconception. Quite to the contrary, at Cea Legal, we believe in the tokenization of everything, meaning that an NFT will represent every digital or physical asset.  Before getting there, whether in a few years (likely) or in several years, bearing in mind the main features of an NFT (uniqueness, immutability ..read more