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October 3, 2018 News

Jason Gottlieb Quoted on Evolving Legal Issues in New Business Models Using Cryptocurrency and Blockchain in the Real Estate Industry

October 3, 2018 – Morrison Cohen Partner Jason Gottlieb was quoted about the evolution of blockchain and cryptocurrency regulations in the article “The Crypto Conundrum” that appeared in the October 1, 2018 issue of The Real Deal.  The article examines the growing number of blockchain and crypto startups that promise to transform the real estate industry.  Jason observes that there is ongoing uncertainty from regulators, with a paucity of clear guidelines for blockchain-based assets in general, and no clearly stated position on asset-backed tokens, creating a gray area of potential regulatory risk.

“The SEC guidance relating to tokens has been somewhat [thinner] than most market participants would like,” Gottlieb said. “I think from the SEC’s point of view, there are too many open questions, and the agency so far has been trying to force tokens into the same boxes as securities.”

Several moves on the agency’s part have shown its “skittishness” on certain crypto matters, Gottlieb said.

“Many companies are going to be hampered by the uncertainty of the regulations,” Gottlieb said. “Even if you’re trying to do everything very responsibly and in a very compliant manner, there are still giant holes.”