Blockchain, Digital Assets & Custody
Enhancing business through strategic compliance solutions.
With a rich history in guiding clients on tokenization and bitcoin, Perkins Coie has been a pioneer since the inception.
We have since grown into the world’s most extensive and foremost Blockchain, Digital Assets & Custody industry group, supporting our clients as they navigate the many applications of blockchain technology.
How we help clients
- Product counsel
- Regulatory compliance
- Litigation and enforcement
- Transactional support
We are at the forefront of the blockchain and virtual currency industry, shaping its future.Our team is well-prepared to manage intricate legal issues and provide robust defense against regulatory and law enforcement actions.
Product Counsel
- Consumer Protection
- Patent Portfolio Management
- Open Source IP Counseling
- Product Launch
- Token Vetting
- Tax, Benefits and Compensation
- Investment Management
Litigation and Enforcement
- Risk Management
- Federal and State Investigations
- Anti-Money Laundering
- Cybersecurity
- Securities Litigation
- Trademark Enforcement and Litigation
Regulatory Compliance
- Institutional Cryptocurrency and Bitlicensing
- Digital Asset Custody
- Digital Asset Trading Platforms (Exchanges)
- Tokenization
- Broker-Dealer
- Commodities and Derivatives
- Digital Asset Fund Formation
Transactional Support
- Business Operations and Corporate Formation
- Commercial and Intellectual Property Matters
- Contract Development and Negotiation
- Consortium Design and Implementation
- Not-for-Profit Formation
- Tax and Benefits
A Leader, Not a Follower
The inception of the Blockchain, Digital Assets & Custody industry group in May 2013 mirrors an evolutionary shift in legal services. A part of the larger Electronic Financial Services group, Perkins Coie has a storied history of representing technology companies in the provision of innovative consumer and financial services, including mobile payment entities, tokenized in-game assets, and e-commerce platforms. At the dawn of Bitcoin and decentralized virtual currency, Perkins Coie was uniquely poised to establish an industry group dedicated to the emerging landscapes of blockchain technology and digital currency. Today, this group comprises over 40 legal professionals who have assisted more than 200 clients in navigating intricate regulatory landscapes, identifying opportunities in intellectual property, engaging with regulators in dialogue, and imparting knowledge about the potentials of blockchain technology.
Shaping The Industry
Our representatives maintain a proactive dialogue with legislators, testifying before the United States House of Representatives and Canada’s Senate Committee of Banking, Trade and Commerce on the future of virtual currency and blockchain regulation. We contribute to the professional development of state bank examiners through the Conference of State Bank Supervisors and have played an advisory role in the Uniform Law Commission Study Committee as it formulated the model Regulation of Virtual Currency Businesses Act. We are institutional members of the Chamber of Digital Commerce, the preeminent trade association for the digital asset and blockchain industry. As founding participants in various Chamber initiatives, including the Digital Assets Accounting Consortium, the Smart Contracts Alliance, the State Working Group, and the DC Blockchain Center, we are committed to shaping industry best practices and fostering its growth. Additionally, we have three members in the Digital Currency & Ledger Defense Coalition, a team dedicated to protecting individual constitutional rights and civil liberties amidst regulatory and law enforcement actions related to digital currencies and ledgers.
A Legal Partner in Innovation
Our diverse team stands at the vanguard, offering our clients insight into the intricate legal landscape surrounding Bitcoin and other virtual currency enterprises. We collaborate with trailblazers developing innovative solutions through blockchain and distributed ledger technologies to meet modern market demands. Our services include regulatory compliance advice, litigation support, consumer protection guidance, and transactional assistance for an array of bitcoin and digital currency systems, services, and products. Our clientele spans virtual currency exchanges, pioneering blockchain entities, payment processors, investors, and industry associations.
Our advisory extends to a multitude of regulatory matters, from the Bank Secrecy Act and FinCEN regulations to the laws and regulations governing securities and commodities. We are here to craft anti-money laundering policies and to structure internal practices to ensure compliance. In times of inquiry or investigation by federal and state law enforcement and regulatory agencies, our seasoned investigations and white-collar defense team is at the ready to protect clients against allegations of fraud, money laundering, and related improprieties, including asset seizures and forfeitures.
Insights
News
Professional Experience
Blockchain, Digital Assets & Custody Experience
IMVU’s VCOIN SEC Staff No-Action
Represented IMVU, Inc. in obtaining a no-action relief from the U.S. Securities and Exchange Commission (SEC) staff that clears the way for its client, IMVU Inc., to sell VCOIN, a blockchain-based digital asset, as a transferable non-security to its users worldwide. This is the first SEC staff no-action letter involving a blockchain-based digital asset that can be transferred outside of a closed platform and exchanged for fiat currency. With these important features, VCOIN is a new way for IMVU’s users to earn value that can be converted into cash and used in the real world.
Stablecoin Experience
- Advise FDIC-insured bank on regulatory, capitalization and compliance issues related to launching a USD-backed stablecoin.
- Advised group of companies on regulatory and contractual issues involved with launching a USD-backed stablecoin.
- Advise technology company on regulatory issues involved with prospective use of DiemUSD stablecoin.
- Advise US cryptocurrency exchanges on regulatory issues involved with support of stablecoins for trading.
- Counsel for digital asset custodian in obtaining a national trust bank charter from Office of the Comptroller of the Currency, including advice on bank policies and procedures related to customer onboarding, capitalization and stablecoin support.
- Counsel for multiple digital asset custodians in obtaining limited purpose trust company charters from the New York State Department of Financial Services, including advice on policies and procedures related to customer onboarding, capitalization and stablecoin support.
Digital Asset Exchanges
Advised numerous digital asset trading desks and exchange businesses on the implication of federal and state money transmission and payments laws on the respective business models, including engaging with state regulators via applications and no-action letters.
MoneyGram
Advised MoneyGram by assisting in negotiations and drafting of agreements related to contemplated product integrations with digital asset products offered by Calibra and Coinme.
Launching Margin Trading Products
Counselled several major digital asset exchanges on the federal and state law implications of launching margin trading products, including conducting meetings with the CFTC and preparing applications for state lending licenses.
Crypto Civil Litigation and Enforcement
In 2018, we were retained to represent numerous entities involved in the cryptocurrency environment related to investigations being conducted by state and federal agencies. Our investigations break down into two sections: civil litigation and enforcement. We are currently handing 12 SEC investigations that primarily center on whether various entities raised funds through an unregistered public offering, and whether they acted as unregistered broker-dealers or investment companies. Separately, the SEC is also looking into possible misrepresentations and misuse of proceeds in a few of these matters. On the state side, we have represented 8 entities in responding to information requests and subpoenas by state agencies.
Overstock.com
Represented Overstock in its shelf registration statement of the first ever SEC-registered public offering of digital securities and the first project to use blockchain technology. Overstock created a startup called T0 that served as the trading platform for digital securities. We represented Overstock in the creation of the startup and prepared the shelf registration statement for the public offering.
Blockchain and Manufacturing
Advised a designer and producer of ASIC chips and products and PCB boards on technological and data management aspects of its integration of blockchain technology into its everyday applications.
Advise to the Government on Blockchain
Advised 15 U.S. House Representatives and Senators on ways to integrate blockchain technology into government functions to reduce bureaucracy.
Blockchain for Financial Services
Advised PeerNova on the development of it blockchain-based financial services technology platform.
Blockchain: Financing
Represented a provider of data layer platform technology that records and stores any type of data into the blockchain in its preferred stock financing.
Blockchain: Regulatory Compliance
Advised a provider of data layer platform technology that records and stores any type of data into the blockchain on regulatory compliance in connection with international trade activities.
Virtual Currency Investment
Represented Andreessen Horowitz in a $25 million Series B investment in Coinbase, a San Francisco-based Bitcoin wallet and platform where merchants and consumers can conduct transactions with digital currency. The investment was the largest investment to date in the Bitcoin and virtual currency industry.
Money Transmission License
Helped CoinMe, a Bitcoin kiosk company, obtain the first money transmission license issued by Washington state to virtual currency.
First Ever Bitcoin Tax-Exempt Status
Assisted BitGive Foundation in obtaining tax-exempt status. This is the first time the IRS has granted tax-exempt status to a bitcoin nonprofit charitable organization.
Drafting Anti-Money Laundering Policies
Assisted an industry-leading Bitcoin kiosk company by developing their security and anti-money laundering policies.
Developing Anti-Money Laundering Programs
Developed comprehensive anti-money laundering programs tailored to virtual currency offerings for several virtual currency companies.
Virtual Currency Startups
Represented multiple startup clients in corporate and regulation work, including wallet providers and mining companies.
Subpoenas and Cease and Desist Letters
Helped virtual currency companies respond to subpoenas and cease and desist letters.
Unfair Competition in Virtual Currency
Obtained dismissal for a virtual currency client from a case alleging unfair competition, unjust enrichment and gross negligence for allegedly failing to obtain a money transmitter license in California.
Wage and Hour Issues With Virtual Currency
Advised virtual currency company on wage and hour issues related to compensating employees in virtual currency.
Insurance
Guided virtual currency companies through the process of securing insurance for significant risks, including for theft of virtual currencies and protecting the board of directors.
Virtual Currency Company Terms and Policies
Developed terms of service, terms of sale and privacy policies for multiple virtual currency companies.
Bankruptcy
Representing depositor in Mt. Gox Chapter 15 bankruptcy case.
Nasdaq
Represented Nasdaq in the development of its blockchain-based technology platform Nasdaq Linq, first used by software developer and infrastructure provider Chain.com to issue shares on December 31, 2015. Nasdaq Linq is a digital ledger technology that leverages a blockchain to facilitate the issuance, cataloging and recording of share transfers for privately held companies.
Money Transmission Licensing
Counsel and aid several clients in obtaining state money transmitter licenses, including providing a state-by-state report.
Token Sales
- Represent a blockchain software technology company on several token sale projects currently in process.
- Represent a token sale advisor on several token sales currently in process.
- Represent Citizens Reserve with respect to regulatory advice and licensing as relates to issuing of tokenized assets.
Enforcement (FinCEN)
Counsel client on U.S. Department of the Treasury Financial Crimes Enforcement Network (FinCEN) issues.
Tokenization Fund
- Represent fund raising capital to invest in token sales currently in process.
- Represent fund creating tokenized LP interests for sale currently in process.
Blockchain for Enterprise
Enterprise Ethereum Alliance Inc.: Not-for-profit formation, open-source IP consult and advising firm for the alliance.