Cryptocurrency & Digital Assets

SEC and CFTC Compliance Services

We assist our clients with SEC and CFTC examinations and subpoena responses and provide advice on IRS rules and corporate structures for STOs, DAOs, SAFTs and digital asset funds. We also evaluate custody issues for crypto custodian clients (and fund clients) and valuation issues for crypto administrator clients. Moreover, we assist with the global distributions of STOs and private placement interests, including conducting a Regulation S analysis and filing Form Ds and related blue-sky filings. Finally, we provide AML and escrow services for private bulk sales of virtual currencies.
 

DIGITAL ASSET FUND FORMATIONS

We also combine with our integrated practice approach to assist our clients with launching open and closed-ended private investment vehicles focused on digital assets, including venture and hedge funds. 
 

LITIGATION

We also provide assistance with regulatory and enforcement proceedings and investigations involving federal, state and law enforcement regulators, including the DOJ, SEC, CFTC, SROs.
 

TAX STRUCTURING

We also assist clients with evaluating tax implications associated with digital assets in light of IRS guidance.
 

Broker-Dealer Services

We have been active in the digital asset space since 2014, initially setting up Bitcoin funds. We also assist our FINRA Broker-Dealer clients with compliance issues relating to crypto assets including AML/KYC requirements, FinCen requirements, and New York BitLicense filings.

ATS Application Services

Additionally, we assist clients with ATS applications (to facilitate the trading of digital assets and virtual currencies) and with Form D/blue sky filings for our Reg D and Reg S clients.

 

Legal considerations for digital assets

Cryptocurrency and digital asset regulations continue to evolve as governments and financial authorities refine their approach to blockchain law. Key considerations include:

• How the SEC applies the Howey Test to determine if a token qualifies as a security.
• CFTC oversight of digital assets classified as commodities, such as Bitcoin.
• AML/KYC requirements for exchanges and crypto service providers under FinCEN regulations.
• Tax implications for cryptocurrency transactions and NFT sales.
• Compliance with state-level money transmitter licenses and the New York BitLicense.

Legal services for cryptocurrency & digital assets

Sadis & Goldberg offers a full suite of blockchain legal services, including:

Crypto Fund Formation & Structuring

• Advising hedge funds and venture capital firms on launching cryptocurrency investment vehicles.
• Drafting private placement memoranda (PPMs), limited partnership agreements, and investor disclosures.
• Ensuring compliance with Regulation D, Regulation S, and other securities exemptions.

Regulatory Compliance & Crypto Licensing

• SEC and CFTC compliance for token offerings and DeFi projects.
• FinCEN registration and AML policies for crypto exchanges and payment providers.
• Broker-dealer and ATS (Alternative Trading System) registrations.

Cryptocurrency Litigation & Enforcement Defense

• Representing clients in crypto fraud investigations, regulatory disputes, and enforcement actions.
• Defending against SEC subpoenas, class action lawsuits, and DOJ crypto-related charges.

emerging trends in cryptocurrency & digital assets

As the digital asset space continues to evolve, new legal considerations are emerging:

• Structuring and operating DAOs (Decentralized Autonomous Organizations) presents regulatory uncertainties, including governance issues, tax obligations, and compliance with securities laws.
• The rise of metaverse platforms has introduced new challenges regarding intellectual property rights, smart contracts, and NFT ownership disputes.
• With governments worldwide exploring CBDCs (Central Bank Digital Currencies), businesses in the crypto sector must navigate potential shifts in regulatory frameworks and market dynamics.

faqs: cryptocurrency & blockchain legal concerns

Q: What is cryptocurrency and blockchain law?
A: Cryptocurrency and blockchain law covers legal regulations for digital assets, tokenized securities, and decentralized finance (DeFi) platforms. It includes SEC compliance, anti-money laundering (AML) laws, and crypto taxation.

Q: How are cryptocurrencies regulated in the U.S.?
A: U.S. cryptocurrency law is shaped by the SEC, CFTC, FinCEN, and IRS. Tokens may be classified as securities, commodities, or property, affecting their regulatory treatment.

Q: When should I hire a crypto lawyer?
A: If you are launching a crypto fund, NFT marketplace, or token sale, or facing regulatory scrutiny, consulting a crypto attorney ensures compliance and legal protection.