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U.S. House Continues to Explore Blockchain Regulation (NLR)

By Jordan Shelton Following up on their recent introduction of the Token Taxonomy Act, Representatives Darren Soto (D-FL) and Warren Davidson (R-OH) have teamed up again to introduce a new slate of bipartisan bills related to virtual currency. The two new bills, H.R. 922 and H.R. 923, were introduced on January 30, 2019 and are cosponsored by Representatives Ted Budd (R-NC) and Bonnie Watson Coleman (D-NJ). H.R. 922H.R. 922, the Virtual Currency Consumer Protection Act of 2019, would require the Chairman of the Commodity Futures Trading Commission (the “CFTC”) to submit a report examining the potential for virtual currency price manipulation to certain House and Senate committees within one year of H.R. 922’s enactment. The report, drafted in consultation with the heads of the Securities and Exchange Commission (the “SEC”) and other relevant federal agencies as the CFTC Chairman deems necessary, would: detail possible methods of virtual currency price manipulation;discuss particularly su…

Stop passing blockchain laws

History has a way of repeating itself. Twenty years ago, when Amazon was just an experiment in online book sales and Google was just a Yahoo! copycat, nobody seemed to understand what the “Internet” actually was or how it would eventually affect our lives.
That went double for lawyers, who in the mid-1990s pushed the panic button when the concept of online contracting became a reality. State lawmakers rushed to introduce statutes that would define and constrain this monster before it wrought havoc on the unsuspecting analog world of contract law. They came up with technology-specific, proscriptive rules for electronic signatures that, had they been successful, would have left the U.S. a patchwork of unworkable state laws that would have prevented electronic delivery and signatures for all kinds of transactions that we take for granted today.
Fortunately, a model law called the Uniform Electronic Transactions Act (UETA) emerged that, in contrast to the initial view that online transactio…

SEC Cyber Unit files first charges

The Securities and Exchange Commission today announced it obtained an emergency asset freeze to halt a fast-moving Initial Coin Offering (ICO) fraud that raised up to $15 million from thousands of investors since August by falsely promising a 13-fold profit in less than a month. The SEC filed charges against a recidivist Quebec securities law violator, Dominic Lacroix, and his company, PlexCorps. The Commission's complaint, filed in federal court in Brooklyn, New York, alleges that Lacroix and PlexCorps marketed and sold securities called PlexCoin on the internet to investors in the U.S. and elsewhere, claiming that investments in PlexCoin would yield a 1,354 percent profit in less than 29 days. The SEC also charged Lacroix's partner, Sabrina Paradis-Royer, in connection with the scheme. Today's charges are the first filed by the SEC's new Cyber Unit. The unit was created in September to focus the Enforcement Division's cyber-related expertise on misconduct involv…

Mobile Contracting: Are Consumers Getting What They Want?

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With a majority of Americans using smartphones as their main entry point to the online world, consumer expectations of access to financial services from their mobile devices are on the rise. Financial institutions are finding more and more that mobile options for consumers are not options at all but instead are imperatives to business success.  ​ So just how comfortable are consumers with using a mobile device to review, understand, and sign actual legal documents? ​ Join Ken Moyle of K6 Partners and host Joe Hopper, Ph.D. of Versta Research for a free one hour webinar on Tuesday, September 12 at 2PM CST as we analyze two independent studies on consumer preferences, behaviors and expectations.
The Electronic Signatures and Records Association (ESRA) and Wells Fargo are sponsoring this event. 
This is your opportunity to enhance your digital electronic signature strategies through direct insight into today’s consumer needs, behaviors and desires when it comes to online and mobile eSignatures…

SEC Weighs in on Initial Coin Offerings (ICOs)

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Initial coin offerings (ICOs)have been hailed as a disruptive new business paradigm that allows startups -- most of which are focused on blockchain or distributed ledger technology (DLT)-- to raise operating funds without the regulatory constraints and requirements that are applied to a traditional underwritten IPO. Being positioned safely outside the regulatory framework, ICOs have become a very attractive and flexible fundraising tool.  The SEC has made it clear, however, that some ICOs are subject to the full reach of the securities laws. ICO market participants must now distinguish those ICOs that may continue without regulatory constraints and those that must now conform to the U.S. securities laws. This treatment is not elective or optional - if the ICO involves the offering of a security, the ICO must be done in accordance with established securities law requirements or proceed under an exemption if available. In its July 25, 2017 Report, the SEC concluded that the tokens offered…

Just Published: Free Library of Digital Policies

K6 Partners announced today the release of a free e-signature policy library at www.esignaturepolicies.com. “The lack of esignature policies–and the sense of certainty they provide– is the number 1 reason for delaying critical digital transformation initiatives,” said Ken Moyle, president of K6 Partners.  “The eSignature Policies site is designed to give transformation leaders a resource for learning more about esignature policy design.” Free Webinar: E-Signature Policies for the Public Sector K6 Partners previously announced that experts in public sector e-signature policy will offer a free webinar on July 11, 2017 at 2:00 PM Eastern / 11:00 AM Pacific. Panelists from state and local governments will share insights on adopting and managing online citizen engagement. "State and local entities are looking for new ways to engage citizens and provide value through digital channels," Moyle said. "Yet they face challenges that are different from those faced by private industry.…

GDPR: The Regulatory Iceberg of 2018

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You're heading into dangerous waters. On May 25, 2018, the European Union (EU) General Data Protection Regulation (GDPR) goes into full effect, and it will almost certainly affect you. If you are not compliant with the GDPR by this date, you could face fines of up to 20 million Euros or 4% of worldwide annual revenue per breach. So it's important to understand whether the GDPR applies to your business, and if it does, what you must do to comply. It probably applies to YOU The GDPR is a comprehensive regulation meant to protect the personal data of EU citizens, wherever that data might be processed. It greatly expands the geographical scope of the EU data protection laws. In fact, the GDPR applies not only to organizations located within the EU, but also to organizations located outside of the EU if they offer goods or services to, or monitor the behavior of, EU residents. So US-based companies will need to comply with the GDPR if they are doing business (or attempting to do bu…