Around the Blockchain News

🗞 | A weekly letter covering the fast-paced world of Crypto & Law. Brought to you by @lex_DAO.

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[Around the Blockchain News @ATBC_News]

Attention ATBC readers: Our team will be taking the next few weeks off as we take our finals! We are also exploring rebranding options to further cement our relationship with @lex_DAO

Thank you for your support & we’re so excited to continue building the future with you all ❤️

[Jacob Robinson @JacobRobinsonJD]

What are the legal risks of participating in a DAO?

This podcast aims to provide a high-level overview to help DAO builders and operators understand the grey-area that is member liability.

https://t.co/YBF2gV2eK6

[Decentralization Research Center @TheDRC_]

The Harvard Summit on Equitable Ownership and Governance will bring together key stakeholders including @RepAuchincloss, former CFTC Chair @timmassad, staffers, academics, industry, and advocacy organizations to discuss how we can build a more equitable online economy 🧵

[Cody Carbone @CodyCarboneDC]

Today, the @DigitalChamber sent letters to Illinois State legislators urging them to modify the Digital Asset Regulation Act (DARA), which would create a more expansive 'BitLicense' regime in Illinois.

https://t.co/ItQ36ePXSa

[exlawyer @exlawyernft]

1. The lawyers from prestigious firm Cooper & Kirk, which has argued numerous cases before multiple Circuit Courts and the United States Supreme Court have issued a white paper describing how federal banking regulators including the @FDICgov have illegally...

[Jacob Robinson @JacobRobinsonJD]

Enjoyed this conversation with @accounting - we cover the tax implications of crypto, as well as his journey building @gordonlawltd

[Lawtoshi @lawtoshi]

Very significant ruling in the Sarcuni v. bZx DAO putative class action this evening. The court has denied the motion to dismiss of members of the DAO who held governance tokens (BZRX), finding the DAO is plausibly alleged to be a general partnership.

The court placed particular emphasis on the apparent attempt by the founders to evade the application of US law by transitioning ownership from LLCs to a DAO, quoting the founders themselves on this point multiple times.

Further, the court reasoned such members are plausibly alleged to have owed a duty of care to the plaintiffs based on representations made about the security of the protocol and how it functioned.

The token-holding defendants are plausibly alleged to have breached that duty by having inadequate security—specifically that a single phishing email to a single developer permitted hackers access to the entire amount of bZx protocol deposits on the Polygon and Binance blockchains.

Although much remains to occur in discovery, the case will proceed personally against bZx founder Kyle Kistner* as DAO token holders, as well as other similarly situated defendants. The court dismissed claims against entities that did not hold DAO tokens.

This case should be closely examined by anyone thinking about legal liability in the DAO space.

*The claims against co-founder Tom Bean were dismissed due to a lack of allegations about the court’s personal jurisdiction over him; an amended pleading may allege additional facts that would allow the case to proceed against Bean.

The ruling is available here: https://t.co/pBcxJQxGDI

[Lawtoshi @lawtoshi]

CFTC sues CZ, Binance

[Around the Blockchain News @ATBC_News]

Happy Monday! ☀️

Here's a roundup of CryptoLaw news you may have missed last week:

1. SEC Makes Moves
2. Do Kwan Arrested
3. White House Criticizes Crypto
4. Senator Emmer's Proposal
5. Taiwan's Regulatory Updates

Read More & Subscribe! ⬇️
https://t.co/vdO0Tk250y

[toly 🇺🇸 @toly]

How to turn around US government on crypto. Call/email/donate to your local congressman. It’s not a ton of work to get a 30 minute 1:1 with them and they are constantly fundraising. It takes less work then complaining all day about the government on CT.

Explain to them that we need stable coin regulation that would allow usdc and other fully backed stable coins to operate like a barer asset as it currently exists with kyc on mint and burn only, and backed by $ in a bank and t bills.

US private issued stable coins will become the default buisness and consumer currency around the world within 5 years.

Dollar will be the world economy. It would be a massive waste of an opportunity if another digital sovereign currency got there first. If US doesn’t hustle, someone else will and US will have even less control over global finance and national security.

[Eli🎀⚖️.eth (Eliana) @eliana_esq]

For those asking about NFT or blockchain utility past the pfps, a lot is happening and will continue to evolve with time. I.e., Estate planning using blockchain

[Decentralization Research Center @TheDRC_]

We’d like to congratulate @arbitrum, a leading Layer-2 scaling solution for @ethereum on the successful launch of their governance token, $ARB, yesterday, marking a significant step forward for the rollup in becoming a DAO. 👏👏👏

https://t.co/qPK11doaQK

[Lawtoshi @lawtoshi]

It is difficult to overstate how remarkable it is that this is the response of a public company to a Wells notice.

[Around the Blockchain News @ATBC_News]

Subscribe to Around the Blockchain News to keep up with cryptolaw news and resources ➡️https://t.co/BsQqwR6S6N

[Around the Blockchain News @ATBC_News]

🚨 CryptoLaw News: EU Parliament Passes Bill Requiring Kill Switches On Smart Contracts

🧵🪡

[Around the Blockchain News @ATBC_News]

🔗: https://t.co/I5Ert1lz9h