The rulings on these legal issues may have far reaching implications in the crypto world

▪ Property Issues. Is cryptocurrency a general intangible, currency, a security, a commodity (or both), or something else? Does the determination change if the crypto is based on proof of work or proof of stake?

▪ Securities Laws. Are the bankrupt exchanges that seek to distribute crypto pursuant to a plan of reorganization violating federal and state securities laws with respect to the purchase and sale of “unregistered securities”? Can federal and state regulators prevent the confirmation of these plans if they argue that these plans may violate federal or state securities law (e.g., Voyager)?

▪ Tax Issues – What actions trigger a disposition of crypto (i.e. a taxable event)? If a BTC holder receives property other than BTC pursuant to a plan, is there a taxable disposition?

▪ Commercial Law Issues. How does one create and perfect a security interest in cryptocurrency? Does the manner of perfection depend on the type of crypto (e.g., BTC v. ETH)?

▪ Consumer Lending Laws. Are borrowers who posted their crypto as collateral in exchange for a loan entitled to the return of their collateral under consumer lending protection statutes? Are the loans issued by the crypto exchanges enforceable if the exchange did not have the necessary licenses (e.g. money transmitter licenses/lending licenses) from federal and state agencies or did not follow the provide the appropriate lending disclosures (e.g., Truth in Lending Act disclosures)?