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Capabilities / Crypto, Digital Assets, & Blockchain

Crypto, Digital Assets, & Blockchain

Advising clients on the rapidly developing compliance and operational landscape for digital assets.

As the use of cryptocurrencies, blockchain technology, decentralized finance (DeFi), nonfungible tokens (NFTs), decentralized autonomous organization (DAOs), Web 3.0 applications, and other digital assets continues to emerge and evolve, compliance with the growing web of regulations, navigating the complex legal issues surrounding this potent decentralized technology, and resolving disputes is increasingly difficult. Husch Blackwell advises clients on the rapidly developing compliance and operational landscape to capitalize on the opportunity provided by these burgeoning technologies.

Our cross-disciplinary team, consisting of transactional, securities, tax, regulatory, government enforcement, intellectual property, energy, finance, private wealth management, and bankruptcy attorneys, leads clients through the emerging regulatory and compliance requirements related to crypto, blockchain, NFTs, and Web 3.0. Most members of our team have earned certificates in blockchain technology to ensure that they understand the intricacies of this emerging area and how to apply their legal experience to it.

As the adoption of decentralized ledger technology and smart contracts expands, their importance and potential to revolutionize many industries, including financial services, intellectual property, logistics and supply chains, the internet of things, energy, health care, insurance, and the sharing economy, continues to increase. Husch Blackwell is ideally positioned to provide the legal support and business guidance necessary to capitalize on this rapidly expanding opportunity.

Our guidance to clients includes:

Transactional

  • Fund formation
  • Early-stage advice and growth
  • Funding
  • IPOs and ICOs

Regulatory Compliance

  • Institutional cryptocurrency and bit licensing
  • Digital asset custody
  • Digital asset trading platforms (Exchanges)
  • Tokenization
  • Broker-dealer
  • Commodities and derivatives
  • Digital asset fund formation
  • Energy regulation
  • SEC investigations and compliance

Intellectual Property

  • Patent portfolio management
  • Content licensing, assignment, and artwork
  • Trademark protection
  • Data and privacy

Tax

  • Tax implications of cryptocurrency sales and trades
  • Tax implications of digital asset sales and exchanges

Representative Experience

  • Advised the founders of CULedger, a technology company that sought to bring blockchain solutions to the credit union industry. Our team organized the company and drafted a complex operating agreement that took into account state and federal regulations and the unique governance approaches of CULedger’s company’s credit union owners. We prepared a private placement memo and drafted licensing and other technology agreements with third parties. Financing was successful, and CULedger was on its way to developing applications using the power of blockchain to serve credit unions and their members.
  • Reviewed and negotiated blockchain participation agreement for client in transportation sector participating in supply chain blockchain application.
  • Reviewed and negotiated partnership, investment documents, and side letter for dozens (typically about four to eight large investments per month for different limited partner investment firms) of venture, private equity, real estate, hedge, and cryptocurrency/blockchain investment funds for family offices and large state pension funds. Investment size ranged from $5 million to $250 million (or more) each.
  • Conducted multistate loan document review for first fintech company to originate residential real property-backed loans that live on blockchain rather than being tokenized.
  • Represent well-known blockchain company for international trademark protection and enforcement.
  • Successfully assisted major bitcoin miner with power acquisition and grid.
  • Successfully negotiated $1 million plus real estate transaction, with proceeds paid in cryptocurrency.
  • Analyze and guide clients on developments with the Electric Reliability Council of Texas’s Large Flexible Load Task Force, which works to integrate bitcoin miners onto the Texas electrical grid.
  • Prepared and prosecuted patents related to financial technology and blockchain.
Legal Updates | December 21, 2022
Celsius Bankruptcy Update: Who Owns the Crypto?
Legal Updates | November 28, 2022
Another Cryptocurrency Firm Bites the Dust
Legal Updates | November 11, 2022
FTX Files for Bankruptcy: Industry Contagion Possible
Legal Updates | November 12, 2021
Stablecoin Market Could Gain from Self-Regulatory Efforts

With federal legislation unlikely, mainstream adoption of digital assets could depend on the industry's own standard-bearing.

Legal Updates | November 09, 2021
U.S. Government Targets Digital Assets for Additional Revenue

The newly passed infrastructure package contains tax implications for cryptocurrency, as well as definitions for “broker” and “digital assets” that may have long-term legal implications.

The firm has substantial trial experience, which is essential to be effective in litigation, and has the confidence to take matters to trial."

Chambers USA 2019