In her recent Law360 article, Goodwin partner Karen Ubell explains how the absence of a clear and permanent regulatory framework continues to stifle long-term, sustainable growth for new blockchain projects that rely on token-driven economies. This growth can best be achieved through new statutes rather than reliance on updated agency guidance and rules, and the current version of the Clarity Act from the U.S. Senate Banking Committee sets out a viable framework that could transform the development, funding, distribution, and growth opportunities for large-scale, transformative innovation built on decentralized token economies. To deal with regulatory uncertainty when launching, issuing, and distributing new tokens, blockchain developers have historically had to establish offshore entities, usually ownerless Caymanian foundations. This continues to be the prevailing practice today.
Read the full analysis: “Clarity Act Would Clear Welcome Pathways For Blockchain” (Law360)