Morgan Lewis is at the forefront of helping clients capitalize on the opportunities presented by digital assets and blockchain technology. We offer legal solutions across a wide spectrum of areas, including new digital assets, decentralized finance (DeFi), non-fungible tokens (NFTs), cryptocurrency, and crypto derivatives, as well as implementation of transactions involving such products using blockchain technology. Our deep industry knowledge and technical understanding of digital asset products and blockchain protocols allow us to stay ahead of shifting trends in the rapidly evolving digital asset market.
Our practice places a strong emphasis on digital assets, including stablecoins, central bank digital currencies (CBDCs), crypto assets, cryptocurrency funds, exchanges and alternative trading platforms, miners, and investments in digital assets, including through initial token offerings.
Our innovative solutions empower our clients to maintain a competitive edge in the dynamic fintech landscape. With our global, cross-practice capabilities, we support clients around the legal complexities affecting digital assets such as regulatory compliance and enforcement, corporate finance, banking, mergers and acquisitions, securities and commodities laws, intellectual property, cybersecurity and privacy, money transmission licensing, litigation, and tax.
Digital Assets
Digital assets, particularly cryptocurrencies, are changing the way we think about money and financial transactions. Morgan Lewis has experience advising clients on complex transactions involving digital assets including cryptocurrency exchanges and cryptocurrency-related investment products and funds. From building exchanges to managing and funding, and staying on top of evolving regulatory compliance, we support clients in navigating every aspect of this evolving industry.
Our experience includes advising on:
- Design and implementation of crypto-asset platforms and exchanges
- Brokerage for crypto assets, including market making
- Regulatory compliance across numerous jurisdictions around the globe, including the United States, United Kingdom, European Union, and the Middle East
- Custodial and noncustodial agreements
- Crypto-asset investment funds
- Tokenization of securities, financial assets, and funds
- Stablecoin issuances
- Wholesale CBDC use cases to market infrastructures
Blockchain
Blockchain technology serves as the backbone of many digital asset systems, offering a decentralized method of data storage and transaction management.
Morgan Lewis is at the forefront of helping clients leverage blockchain technology for a variety of applications while navigating the evolving multinational legal landscape. With our extensive cross-practice resources, global presence, and deep knowledge in fintech, we provide comprehensive solutions for clients navigating the blockchain space. Whether our client is seeking regulatory advice, funding opportunities, or compliance solutions, our team is equipped to help achieve success.
We support clients in a range of blockchain-related areas, including:
- Blockchain-based technology applications
- Regulatory review and compliance
- Financing and funding
- Legal and regulatory due diligence
- Tokenized assets
Supervision, Enforcement & Regulatory Oversight
As digital assets and blockchain technology expand, regulators and enforcement agencies around the world are focusing on efforts to ensure compliance, protect consumers, and prevent fraud. In the United States, the regulatory landscape has expanded to include state attorneys general in investigations and enforcement actions, focusing on issues such as consumer protection, market integrity, and compliance within the digital asset space. The fast-moving legislative proposals in the US Congress envision a sweeping federal and state banking supervision, enforcement, and regulatory framework for stablecoin adoption by institutions seeking access to US financial institutions.
At Morgan Lewis, we help clients navigate this evolving regulatory landscape, offering guidance on:
- Consumer protection in digital asset transactions
- US federal and state regulatory compliance and enforcement actions and investigations, including the OCC, FDIC, Federal Reserve Board, SEC, CFTC, Treasury, FinCEN, DOJ, FTC, state attorneys general, and other regulatory and enforcement agencies around the world
- Anti-money laundering (AML) compliance for financial institutions and crypto exchanges
- Licensing for crypto exchanges, trading platforms, and broker-dealers
- Representation for foreign electronic money institutions providing fiat-to-crypto services
Digital Deal Structuring & Conflict Resolution
Navigating the fast-paced world of digital assets requires a unique blend of legal insight and cutting-edge technological knowledge. We leverage our deep background in this space to guide clients through complex deals while ensuring legal compliance in a rapidly changing market. Our work for clients includes:
- Mergers and acquisitions across the digital asset space
- Public and private capital raising efforts
- Commercial contracts
- Litigation and dispute resolution
- Cryptocurrency insolvency events
- Transactions involving financial and insurance technology innovators
- Stablecoin consortia formations
Law, Tech & Regulatory Advancement
We provide forward-thinking counsel, anticipating industry shifts to guide clients through the evolving world of emerging technologies and regulatory frameworks. Our services include:
- Cryptocurrency and NFT creation
- Web3 development and deployment strategies
- Innovative cryptocurrency derivatives and financial instruments
- Regulatory compliance in each of many jurisdictions around the globe, including the United States (federal and state), United Kingdom, European Union, and the Middle East
- Spot and crypto-linked ETFs
- Bitcoin-backed lending arrangements
- Alternative and Islamic investment arrangements involving cryptocurrencies
- Staking arrangements
- Taxation of digital assets, including crypto-based exchange-traded products, investments, tokenization, sales, exchanges, reporting, withholding, staking, and mining
- AML compliance for stablecoin transfers
Crypto-enabled Financial Advancement
Our team brings a wealth of experience in conventional finance and transformative technologies to steer clients through paradigm shifts. We advise on:
- Blockchain banking solutions that parallel global regulatory standards
- Crypto-asset exchanges and trading platform frameworks
- Asset tokenization involving enhanced liquidity
- Digital asset/blockchain/AI policy and governance
- Negotiating partnerships between banks (including FDIC-supervised banks) and crypto-related fintech partners
- The use of bitcoin ATMs in retail environments
Next-Gen Market Expansion
The digital asset and blockchain space provides for emerging opportunities, from decentralized autonomous organizations (DAOs) to the rapidly growing NFT market. We help clients navigate and capitalize on these innovative developments, advising on:
- Establishing DAOs in the United States or elsewhere
- DeFi structures impacting traditional banking
- The NFT marketplace
- Blockchain-powered supply chain transparency initiatives
