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Blockchain Technology Will Not Disrupt Financial Services Anytime Soon

September 24, 2018

Authors

Jim Goldberg

Blockchain Technology Will Not Disrupt Financial Services Anytime Soon

September 24, 2018

by: Jim Goldberg

Twenty venture capitalists gathered in Silicon Valley last week to discuss the impact of blockchain technology, including digital currency, on financial services and venture capital. The 20 VCs represent an equal number of funds, which invest–or are looking for investment opportunities–all over the world, including the third world. They represented a diverse group of perspectives, with some having regulatory experience, some having experience with conventional payment mechanisms and some with innovative mechanisms such as PayPal. Even their disagreements were instructive of the uncertain future of blockchain technology and its various potential applications.

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The Magic of Mt. Gox

November 27, 2017

Authors

Bryce Suzuki and Justin Sabin

The Magic of Mt. Gox

November 27, 2017

by: Bryce Suzuki and Justin Sabin

How Bitcoin Is Confounding Insolvency Law

Arthur C. Clarke famously observed: “Any sufficiently advanced technology is indistinguishable from magic.” Our regulatory, legislative, and judicial systems illustrate this principle whenever new technology exceeds the limits of our existing legal framework and collective legal imagination.  Cryptocurrency, such as bitcoin, has proven particularly “magical” in the existing framework of bankruptcy law, which has not yet determined quite what bitcoin is—a currency, an intangible asset, a commodity contract, or something else entirely.

The answer to that question matters, because capturing the value of highly-volatile cryptocurrency often determines winners and losers in bankruptcy cases where cryptocurrency

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Bitcoin after Brexit: Safe Haven or Harbinger of Future Distress?

July 21, 2016

Authors

Bryce Suzuki and Justin Sabin

Bitcoin after Brexit: Safe Haven or Harbinger of Future Distress?

July 21, 2016

by: Bryce Suzuki and Justin Sabin

What a difference a week can make! On June 17, 2016, bitcoin was trading at more than $750. Five days later, as polls showed the Brexit vote leaning heavily to “remain,” bitcoin dropped as low as $585. After the vote to leave the European Union became final, the British Pound, the Euro, the Chinese Yuan, and global stocks dropped precipitously. Bitcoin, on the other hand, spiked to more than $676. Could this mean bitcoin is being perceived as a new safe-haven asset?

A Brief Background on Bitcoin Generally

Bitcoin often is described as a “digital currency.” On a more

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CFTC Asserts Jurisdiction over Bitcoin Trading Platform

October 1, 2015

Authors

Bryan Cave Leighton Paisner

CFTC Asserts Jurisdiction over Bitcoin Trading Platform

October 1, 2015

by: Bryan Cave Leighton Paisner

On September 17, 2015, the CFTC entered into a settlement with Coinflip, Inc. d/b/a Derivabit and Francisco Riordan. As part of the settlement with Coinflip, the CFTC entered an Order which included findings and the imposition of remedial sanctions. The CFTC found that Coinflip operated an “options trading platform that connected buyers and sellers of standardized Bitcoin options and futures contracts.” By doing so, the company had violated the Commodities Exchange Act by operating a facility for trading options or processing swaps without being registered with the CFTC as a Swap Execution Facility or a designated contract market.

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“Is it safe?” Banking in 2014

May 1, 2014

Authors

Bryan Cave Leighton Paisner

“Is it safe?” Banking in 2014

May 1, 2014

by: Bryan Cave Leighton Paisner

Szell:  Is it safe? Babe:  I don’t know what you mean. I can’t tell you something’s safe or not, unless I know specifically what you’re talking about. Szell:  Is it safe? Babe: Yes, it’s safe, it’s very safe, it’s so safe you wouldn’t believe it. Szell:  Is it safe? Babe:  No. It’s not safe, it’s… very dangerous, be careful.

In the 1976 movie Marathon Man, Babe (Dustin Hoffman) is held down while Nazi war criminal Szell (Laurence Olivier) drills Babe’s teeth without anesthetic, trying to learn if it is safe to sell a cache of diamonds stolen from concentration camp

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Should Your Bank Do Business with Bitcoin?

February 10, 2014

Authors

Bryan Cave Leighton Paisner

Should Your Bank Do Business with Bitcoin?

February 10, 2014

by: Bryan Cave Leighton Paisner

If you hear the word “Bitcoin” and roll your eyes, a glimpse into the Bitcoin economy may inspire a new respect. In Spring 2013, the Bitcoin economy topped the $1 billion mark for a time, which is more than the economy of some small countries. This is not a pyramid scheme — this is potentially a whole new way of making payments.

What is Bitcoin?

If you are not a technology guru, Bitcoin can be a difficult concept to wrap your arms around. Bitcoin is a crypto-currency designed to create a new kind of money. Bitcoin uses cryptography, or a

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