January 04, 2019 Top Story

Cryptocurrency Covered Under Securities Laws, Federal Court Rules

Transactions constituted investment contracts subject to securities law

By Martha L. Kohlstrand

For the first time, a federal district court has ruled that cryptocurrencies may be covered by U.S. securities laws.

In United States v. Zaslavskiy, the U.S. District Court for the Eastern District of New York held that an initial coin offering (ICO) may be subject to the securities laws, a decision that could have far-reaching implications for litigators, ABA Section of Litigation leaders say.

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