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FinTech Nostradamus

May 25, 2023

Gov't Backtrack On Ether As Security May Spur Crypto Clash

By Matthew G. Lindenbaum, Robert L. Lindholm, Richard B. Levin, Daniel Curran


Nelson Mullins partners Matthew Lindenbaum and Robert Lindholm, associate Daniel Curran, and chair of the FinTech and Regulation Practice, Richard B. Levin, recently had their article, “Gov't Backtrack On Ether As Security May Spur Crypto Clash,” featured on Law360. In the article, the trio of seasoned attorneys discuss the confusion swirling around in the cryptocurrency space today surrounding past and present case opinions regarding the qualifications of securities.

“[New York Attorney General Letitia James] alleged in her petition that KuCoin violated New York's Martin Act, the state’s ‘blue sky’ securities law,” write Lindenbaum, Lindholm, and Levin, “by (1) selling and purchasing securities and commodities without being registered as a New York commodities broker-dealer or securities broker or dealer; (2) issuing ‘KuCoin Earn,’ a proprietary savings and staking token, which the New York attorney general considers an unregistered security; and (3) falsely holding itself out as an exchange.”

Subscribers can read the full article here.