The document discusses the state of blockchain and cryptocurrency regulation in the U.S. as of May 2019, including insights into token sales and the perspectives of various regulatory bodies. It highlights data on token sales, identifies blockchain-friendly states, and underscores the importance of legal counsel in navigating the complex regulatory landscape. Additionally, it introduces the Token Taxonomy Act and mentions various organizations involved in blockchain advocacy.

1. FIBREE World Summit - May 21, 2019, Vienna
Alexandra Levin Kramer
• Founding Chair of CKR Law’s Blockchain Technology & Digital Currency practice group of over 50 attorneys world-wide, who provide U.S. and foreign
clients including startups, cryptofunds, investors, advisors and more with sophisticated and knowledgeable legal advice in underlying legal specialties such
as securities, real estate, intellectual property, banking, finance, corporate, investment funds, tax, immigration, employment and litigation (CKRlaw.com)
• North American Regional Director of the Foundation of International Blockchain & Real Estate Expertise (FIBREE.org)
• Chief Diversity Officer for the Wall Street Blockchain Alliance (wsba.co)
• Co-founder of Womin.io, a decentralized employment marketplace powered by blockchain, providing a platform for employers and freelancers to engage
directly on a peer to peer basis in a growing freelancer economy (womin.io) and the Womin’s Lounge at Consensus 2019
www.ckrlaw.com
akramer@ckrlaw.com
IS THE U.S. OPEN FOR BLOCKCHAIN BUSINESS?

2. DISCLAIMER
Nothing in this presentation constitutes legal advice. This is a general
conceptual and theoretical high-level overview of virtual currency,
blockchain, initial coin offerings (ICOs) / token sales, tokens, the U.S.
securities laws, some of the registration exemptions which might be
available, real estate and blockchain and related topics. Nothing herein is
intended or related to any particular factual situation. Nothing herein
forms an attorney-client relationship. You are advised to consult with your
own lawyer, accountant and other professionals before making any
decisions. The comments and opinions expressed today and in this
presentation are of the individual speaker and author and may not reflect
the opinions of CKR Law LLP or any individual attorney.
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3. 2018 Token Sales (USD)
Source: Coinschedule.com, January 16, 2019
2019 (to date): $964 million raised from 95 Token Sales
2018: $21.5 billion total raised from 1,075 Token Sales
2017: $6.2 billion from 371 Token Sales
2016: $0.1 billion ($98 million) from 50 Token Sales3

4. 2018 Token Sales: Top Ten
Source: Coinschedule.com, January 16, 2019
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5. 2018 Token Sales (by category)
Source: Coinschedule.com, January 16, 2019
5
←

6. Real Estate Token Sales
Source: Coinschedule.com, January 16, 2019
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7. Top Token Sale Jurisdictions – 2019
(Jan 1 – May 20)
Source: Coinschedule.com, May 20, 2019

8. Top Blockchain Jurisdictions

9. Other Top Blockchain Jurisdictions
FRIENDLY NOT SO FRIENDLY
Australia Bangladesh
Canada Bolivia
Dubai China (Mainland)
UK, European Union
(Estonia, France, Gibraltar, Malta,
Netherlands, Sweden)
Ecuador
Georgia Ghana
India Iran
Japan (sort of) Kyrgyzstan
Mauritius Morocco
Singapore Nepal
Switzerland Philippines
Ukraine South Korea
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10. ARE TOKENS REGULATED IN THE U.S.?
YES
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11. U.S. Regulation and Law: Blockchain Tokens
How do U.S. Regulators view tokens?
• SEC: May be a Security (in some cases)
• Commodity Futures Trading Commission (CFTC): Commodity
• U.S. Treasury Dept’s Financial Crimes Enforcement Network (FinCEN): Money
• Internal Revenue Service (IRS): Property
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12. Blockchain-Friendly U.S. States
STATE AREA
Arizona (sort of) Proposed Tax Payments in Cryptocurrency (vetoed), Regulatory Sandbox
Colorado Recognizes DLT to Mitigate Cyber Attacks
Delaware Recognizes DLT for Corporate Records, Stock Ledger
Illinois Recording Real Estate (Cook County trial), Smart Contracts
Nevada Recognizes electronic records, signatures and contracts including on a blockchain, prohibits local government from: (1) imposing a tax or fee on the use of a blockchain; (2) requiring a certificate, license or permit to use a blockchain; and (3)
imposing any other requirement relating to the use of a blockchain.
New Hampshire Persons using virtual currencies are exempt from registering as money transmitters
New York (sort of) NYC EDC vs Virtual Currency Business Activity License (“BitLicense”): Applies to "any one of the following types of activities involving New York or a New York Resident:
• receiving Virtual Currency for Transmission or Transmitting Virtual Currency, except where the transaction is undertaken for non-financial purposes and does not involve the transfer of more than a nominal amount of Virtual Currency;
• storing, holding, or maintaining custody or control of Virtual Currency on behalf of others;
• buying and selling Virtual Currency as a customer business;
• performing Exchange Services as a customer business; or
• controlling, administering or issuing a Virtual Currency.”
Tennessee Recognizes electronic records on a blockchain, smart contracts
Vermont Notaries, Real Estate, creation of “Digital Currency Limited Liability Companies,” (pay to the State “in the form of its digital currency a transaction tax equivalent to $0.01” whenever a unit of currency is mined, created, sold or transferred but they
will be “exempt from taxes otherwise applicable.”)
West Virginia First U.S. state to test internet voting by blockchain in primary elections (deployed and overseas military families)
Wyoming March 2018 - 5 bills: bitcoin, blockchain records, crypto property tax exemption, utility tokens:
Excludes developers or sellers of an open blockchain token from State securities laws if:
(i) The developer or seller files a notice of intent with the Secretary of State
(ii) The purpose of the token is for a consumptive purpose
(iii) The developed or seller of the token did not sell the token to the initial buyer as a financial investment.
March 2019 – Bill SF 125 covers the full range of digital assets, which are categorized into three groups: (1) digital consumer assets, (2) digital securities and (3) virtual currencies, each one corresponding to a different existing category of property
under the UCC. It also:
• Classifies digital assets within existing laws;
• Specifies that digital assets are intangible personal property within the UCC;
• Authorizes security interests in a range of digital assets while respecting the technological realities of these assets; and
• Establishes an opt-in framework for banks to provide custodial services for digital assets -- resolving many of the lingering issues surrounding the legal status of digital assets which have
prevented banks from becoming qualified custodians under existing law.*
* Source: https://www.forbes.com/sites/andreatinianow/2019/03/07/a-split-emerges-in-blockchain-law-wyomings-approach-versus-the-supplemental-act/#7eec9844719a
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13. U.S. Regulation and Law: Real Estate
What other U.S. federal, state & county legal issues apply to real estate?
• Know Your Client / Anti-Money Laundering / Office of Foreign Assets Control
• Privacy
• Landlord Tenant
• Contracts (leases, sales and purchases, etc.)
• Transfer Tax / Tax Deferred Exchanges
• Lending / Financing
• Title
• Land Use / Zoning / Environmental
• Bankruptcy13

14. Future: Token Taxonomy Act
(Introduced 12/20/2018 in Congress)
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Congressman Warren Davidson (R- Ohio, 8th District) – Blockchain Week NYC 2019
CKR Law New York Office Private Lunch; Womin’s Lounge at Consensus 2019

15. Is the U.S. Open for Blockchain Business?
YES
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BUT BE CAREFUL!

16. More Info
CKR Blockchain Blog: www.ckrlaw.com/blockchain-blog/
Token Taxonomy Act: www.congress.gov/bill/115th-congress/house-bill/7356/text
Congressional Blockchain Caucus: www.congressionalblockchaincaucus.com/
Chamber of Digital Commerce: www.digitalchamber.org/token-alliance-paper/
Wyoming Blockchain Coalition: www.wyomingblockchain.io
Global Blockchain Business Council: www.gbbcouncil.org
Wall Street Blockchain Alliance: www.wsba.co
Foundation of International Blockchain & Real Estate Expertise: www.FIBREE.org
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17. CONTACT US
Alexandra Levin Kramer, Esq.
CKR Law LLP
1330 Avenue of Americas
New York, NY 10019
USA
+1 (212) 259-7300
akramer@ckrlaw.com
www.ckrlaw.com
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