New Jersey Cryptocurrency Lawyers
Blockchain technology is one of the hottest industries going right now. Whether it is cryptocurrencies, NFTs, tokens, or other digital assets, blockchain has gone over the past decade-plus from a niche industry for the tech-savvy to front page news on the New York Times and Wall Street Journal. Seemingly everyone now is interested in blockchain investments, and the innovative possibilities created by blockchain technology.
However, like any new industry, blockchain technology and cryptocurrency finds itself facing an ever-shifting legal and regulatory landscape. Also, like any growing industry, it has attracted the eyes of government regulators and legal professionals. Counsel to blockchain clients need to be well-informed on industry events and prepared to advise their clients on new developments from state and federal regulators, as well as key court decisions. If you are participating in the blockchain industry, whether as the owner of the company such as a mining or trading operation, or simply an investor with significant blockchain assets, you may be approached by state or federal regulators, or you may find yourself needing to be a plaintiff or defendant in legal proceedings. In those cases, you will need the advice and services of skilled cryptocurrency and blockchain counsel. The attorneys at Dressel/Malikschmitt have significant experience with cryptocurrency and blockchain-related litigation, investigations and legal advice.
Blockchain and cryptocurrency are industries where things change on a dime. New regulations are promulgated, old regulations are suddenly re-interpreted. The assets at issue in a particular matter may suddenly balloon in value, or, alternatively, become valueless. Attorneys who represent clients in the blockchain and cryptocurrency industries need to have flexible, proactive approaches to legal issues. Well-thought-out strategies can be undermined when there is a price jump in an asset, or some other sudden development, and blockchain counsel must be ready to pivot and adapt. The cryptocurrency attorneys and blockchain lawyers at Dressel/Malikschmitt stay up to date on recent litigation in the crypto-industry and monitor new regulatory developments, as well as developments in the blockchain industry generally, in order to provide informed advice to their clients.
Business and Regulatory Advice
Blockchain businesses often live by the same principles of decentralization that drive blockchain technology. From an organizational standpoint, this can be good, in that there are not multiple layers between attorneys and management. However, it can also pose difficulties for the decision-making process by removing the layers of review of business and legal decisions that more traditional organizations may engage in. Dressel/Malikschmitt can help develop legal best practices within your organization in order to help management form sound strategies that avoid legal issues, and potential regulatory investigations, which could jeopardize assets, investors, or management.
Regulatory Developments in Cryptocurrency
Of particular importance are regulatory developments. Your business needs counsel that will stay abreast of these issues. Innovation in the crypto-asset class well outpaces the ability to regulate, and regulators are constantly changing their requirements and approaches in an effort to keep up with this innovation. Moreover, the cross-border nature of many blockchain transactions also creates a patchwork of regulations for blockchain-based businesses to consider. Dressel/Malikschmitt’s attorneys monitor regulatory changes and are prepared to advise our clients on key regulatory developments.
The Securities and Exchange Commission and Commodity Futures Trading Commission (in addition to the IRS) are increasing their efforts to regulate cryptotokens, blockchain assets and blockchain-based securities. Blockchain-based assets are also increasingly catching the attention of law enforcement agencies, with increased efforts to unmask crypto-transactions which may be linked to illicit activities. If you are under investigation or are concerned that may become involved in a government investigation, concerning blockchain-based assets, you need legal advice from a lawyer who understands blockchain and the applicable law. It is important to work with attorneys who can effectively interface with these enforcement agencies to protect the client and its investors and owners. The attorneys at Dressel/Malikschmitt are prepared to provide that advice and aid with responses to investigations by regulatory agencies, law enforcement or even audits by investors.
Dressel/Malikschmitt LLP has led successful representations in litigation, internal investigations and provided general legal advice for parties within the blockchain industry. Our attorneys are prepared to offer advice and representation to you or your business regarding:
- Government investigations
- Mining Pool Agreements
- Shareholder Agreements
- Criminal liability
- Subpoena responses
- Investor dispute resolution
- Governance dispute resolution
- Internal investigations
- Contract dispute resolution
- Drafting of agreements with investors or outside service providers
- Entity formation documents
Blockchain businesses and their investors face a quickly changing set of emerging legal concerns and questions. Dressel/Malikschmitt attorneys are informed and experienced in cryptocurrency, digital asset, and blockchain-related legal matters. To contact the attorneys at Dressel/Malikschmitt LLP, call us at (848) 202-9323, or submit the Contact Us form for a free consultation.
Practice Area: Digital Currency
Type of Client: An individual in a business partnership
Client’s Issue: Our client was frozen out of a multimillion-dollar Bitcoin mining operation. We needed to get our client back in the business and return his millions of bitcoin.
Approach: We brought suit in New Jersey Superior Court, engaging in vigorous pretrial motion practice.
Result: The final results of this case are pending. We have successfully obtained a preliminary injunction, including a special fiscal master and an accounting in order to protect our client’s interests pending trial.
Practice Area: Digital Currency
Type of Client: A large investor in a cryptocurrency enterprise.
Client’s Issue: Our client is seeking–among other things–a large outstanding loan.
Approach: We brought suit in New York Supreme Court to protect our client’s rights.
Result: Results of this case are pending.
FAQs About Cryptocurrency Law in New Jersey
Cryptocurrency is a digital asset that can be used as a medium of exchange or store of value, much like physical money is used in the real world. It is securely stored in digital wallets, and transactions using it are recorded on a decentralized network of virtual ledgers called the blockchain, which make it nearly impossible to counterfeit, double-spend, or steal. Popular forms of cryptocurrency include Bitcoin (BTC), Ethereum (ETH), and Tether (USDT), but there are a multitude of digital currencies out there.
One of the defining features of cryptocurrency is that it is not issued by a central government or other powerful entity. In theory, this makes each currency self-regulating. The reality is a bit more complicated. As crypto has become more popular, governments have stepped up regulation of its creation and use. The IRS, the Securities and Exchange Commission, and Commodity Futures Trading Commission, as well as many states, are increasing their regulation of digital assets and blockchain technology. It is likely that Congress will also begin to pass crypto-specific laws in the coming years.
Many of the legal issues impacting cryptocurrency arise because there is a tension between innovation and regulation. The industry is rapidly changing and growing, and regulators are struggling to keep up. Other legal issues facing crypto uses and companies come from traditional business, consumer, and contract law. Any time you have one entity or person interacting with another, you have the potential for legal conflict. Lawyers like those at Dressel/Malikschmitt who understand crypto, but also have a firm foundation in traditional legal topics are eager to assist as the interest in cryptocurrency grows.
It is legal to purchase and use cryptocurrency, just as one would any other asset. However, there are certain crypto-backed financial instruments the government is cracking down on. If you plan on making a significant investment in cryptocurrency, you should consider consulting with a crypto-friendly law firm like Dressel/Malikschmitt. If you have been contacted by law enforcement officials about your crypto holdings, it is imperative you speak with an experienced counsel who can advise you on crypto and criminal law, like Andrew Dressel and Christopher Malikschmitt can.
Dressel/Malikschmitt has helped facilitate many crypto-related transactions. Our attorneys draft business formation and governance documents for entities entering the industry, assist with intellectual property issues, facilitate meetings between our clients and potential investors, conduct legal due diligence on purported crypto businesses, represent our clients before regulators and law enforcement officials, and advise our clients on emerging regulations. We are also one of the few law firms in New Jersey to have successfully represented crypto and blockchain clients in litigation.
If you are participating in the cryptocurrency industry, whether as the owner of a company such as a mining or trading operation, or simply as an investor with significant blockchain assets, you need to work with an attorney that understands crypto. Making sure your assets are legally secure, and you are in compliance with the patchwork of changing regulations in this area, is not something you can afford to ignore. You may also need counsel if government regulators or law enforcement officials begin asking you questions, or you find yourself in a heated dispute with others in the industry.
Cryptocurrency is an exciting and ever-changing frontier that has the potential to shake the foundations of a multitude of established industries. It is important to work with legal counsel that understands the potential and perils of digital currencies and the blockchain. But it is equally important to work with a firm that has business experience, and knows how to draft and review contracts, resolve disputes, and interpret and comply with regulations. More daring investors and crypto business creators may also need advice from a criminal defense attorney. Dressel/Malikschmitt checks all of these boxes. Our team has facilitated many crypto-related transactions, and we are one of the few law firms in New Jersey to have successfully represented crypto and blockchain clients in litigation.