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May 19, 2023

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

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


In an article published in Law360, Nelson Mullins attorneys Matthew Lindenbaum, Robert Lindholm, and Richard Levin described the confusion that cryptocurrency entrepreneurs might feel now. This confusion regards present vs. past opinions of government officials on what types of cryptocurrencies qualify as 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.”

Click here for the full article.