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6 Important Takeaways for HIPAA Covered Entities and Business Associates from 2024 NIST HHS OCR Conference

Former Federal Prosecutor Joins BakerHostetler’s Powerhouse Privacy and Cybersecurity Litigation Team in Los Angeles

James Sherer, Brittany Yantis, Luke Record Publish Article in Cybersecurity Law & Strategy

Morgan Holtman Participates in Annual Institute on Current Issues in International Taxation

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<a href="#crypto">Crypto Firms Launch Stablecoin Network and Custody Service, Achieve Licenses</a>

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<a href="#exchanges">Exchanges Launch, Acquire Broker-Dealers; $2.68B in Tokens Set to Unlock</a>

<a href="#traditional">Traditional Financial Institutions Announce Tokenized Fund Initiatives</a>

<a href="#web3">Web3 Company Receives Wells Notice; Data on SEC Crypto Enforcement Published</a>

<a href="#data">New Data Published on Crypto Hacks and Russian Crypto Crime</a>

Article: <a href="https://www.dailyjournal.com/articles/381663-a-tale-of-two-philosophies-crypto-and-capital-markets-under-harris-and-trump" target="_blank" rel="noreferrer noopener">A Tale of Two Philosophies: Crypto and Capital Markets Under Harris and Trump</a>

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Crypto Firms Launch Stablecoin Network and Custody Service, Achieve Licenses

By <a href="https://www.bakerlaw.com/KeithRMurphy">Keith R. Murphy</a>

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According to recent press releases, multiple major fintech and digital asset companies have partnered to introduce the Global Dollar Network as an open network designed to accelerate stablecoin usage globally. As noted in the press releases, central to the network is the new Global Dollar (USDG), a U.S. dollar-backed stablecoin issued in Singapore by Paxos. The network reportedly aims to leverage the strengths of all its partners “to incentivize the development of both crypto and broader financial solutions involving USDG.” According to the press releases, USDG is available on Ethereum and will be issued on more blockchains in the near future.

In related news, a well-known digital asset platform and infrastructure provider has received in-principle approval for its Major Payment Institution license from the Monetary Authority of Singapore, according to a recent press release by the platform. The license reportedly will allow the platform to provide services such as account issuance, domestic and cross-border money transfer, e-money issuance and digital payment token services.

And finally, according to a recent report, a Bolivian bank has launched a custody service for the USDT stablecoin to enable secure crypto transactions. The new custody service reportedly positions the bank as a pioneer in Bolivia, a country that only earlier this year lifted its ban on BTC and crypto payments. According to the report, the bank has established strategic partnerships with known international and custody exchange companies in an effort to enhance data protection and prevent illicit activities.

For more information, please refer to the following links:

<a href="https://paxos.com/blog/paxos-introduces-global-dollar-usdg/" target="_blank" rel="noreferrer noopener">Paxos Introduces Global Dollar (USDG)</a>

<a href="https://paxos.com/blog/introducing-global-dollar-network-an-open-network-to-accelerate-and-reward-global-stablecoin-adoption-driven-by-anchorage-digital-bullish-galaxy-digital-kraken-nuvei-paxos-and-robinhood/" target="_blank" rel="noreferrer noopener">Introducing Global Dollar Network</a>

<a href="https://www.anchorage.com/insights/anchorage-digital-singapore-receives-in-principle-approval-from-monetary-authority-singapore" target="_blank" rel="noreferrer noopener">Anchorage Digital Singapore Receives In-Principle Approval from the Monetary Authority of Singapore (MAS)</a>

<a href="https://invezz.com/news/2024/10/28/bolivian-bank-banco-bisa-launches-usdt-custody-service/" target="_blank" rel="noreferrer noopener">Bolivian bank Banco Bisa launches USDT custody service</a>

Exchanges Launch, Acquire Broker-Dealers; $2.68B in Tokens Set to Unlock

By <a href="https://www.bakerlaw.com/RobertAMusiala">Robert A. Musiala Jr.</a>

A major U.S. cryptocurrency exchange recently announced a “new licensed broker offering that will service eligible Australian wholesale clients with a broad suite of exciting crypto-based derivatives products.” According to a blog post, the new products will be available through the exchange’s Australian financial services licensed broker.

In a similar development, another major cryptocurrency exchange recently announced “the acquisition of a SEC registered broker-dealer and member of FINRA and SIPC, Watchdog Capital, LLC.” According to a press release, the acquisition will enable the company’s new subsidiary to offer equities and equity options, among other things, to eligible traders in the U.S.

In a final notable item, according to recent reports, approximately $2.68 billion in locked digital asset tokens are expected to be unlocked and become available for trading this November. The tokens scheduled to unlock reportedly include tokens for the Memecoin (MEME), Aptos (APT), Arbitrum (ARM), Avalanche (AVAX) and Optimism (OP) projects.

<a href="https://blog.kraken.com/product/aus-licensed-broker-offering" target="_blank" rel="noreferrer noopener">Kraken launches licensed broker offering for Australian wholesale clients</a>

<a href="https://crypto.com/company-news/cryptocom-announces-acquisition-of-sec-registered-broker-dealer-watchdog-capital-llc" target="_blank" rel="noreferrer noopener">Crypto.com Announces Acquisition of SEC Registered Broker-Dealer Watchdog Capital, LLC</a>

<a href="https://cointelegraph.com/news/november-2024-crypto-token-unlocks" target="_blank" rel="noreferrer noopener">Crypto projects set to unlock $2.6B in tokens in November</a>

Traditional Financial Institutions Announce Tokenized Fund Initiatives

By <a href="https://www.bakerlaw.com/RobertAMusiala">Robert A. Musiala Jr.</a><a href="https://www.bakerlaw.com/VeronicaReynolds"></a>

A major global bank recently announced that it has launched “its first tokenized investment fund uMINT, made available through authorized distribution partner, DigiFT.” According to a press release, uMINT is “a Money Market investment underpinned by high quality money market instruments based on a conservative, risk-managed framework.” The press release further notes that uMINT is “built on Ethereum distributed ledger technology” and was issued using the bank’s “in-house tokenization service.” Separately, in a related development, two major global financial institutions recently announced “the proof-of-concept of an on-chain money market fund (MMF) with [a] digital foreign exchange (FX) swap solution which demonstrates real-time settlement.”

According to recent reports, Libeara, a blockchain asset tokenization platform, has partnered with FundBridge Capital, a fund management infrastructure provider, to introduce tokenized U.S. Treasuries on the Ethereum blockchain. A major multinational bank will reportedly serve as custodian for the new product.

In a final notable development, a joint initiative of Chainlink, an affiliate of a major global bank and the world’s leading provider of secure financial messaging services, recently announced the successful completion of “a pilot for settling tokenized fund subscriptions and redemptions” using the network of the secure financial messaging services provider. According to a press release, the pilot demonstrates how financial institutions can leverage existing financial messaging infrastructure to facilitate off-chain cash settlements for tokenized funds.

<a href="https://www.prnewswire.com/in/news-releases/ubs-asset-management-launches-its-first-tokenised-money-market-fund-available-through-digift-302294683.html" target="_blank" rel="noreferrer noopener">UBS Asset Management launches its first tokenised Money Market Fund, available through DigiFT</a>

<a href="https://invezz.com/news/2024/10/30/libeara-and-fundbridge-capital-launch-a-tokenized-united-states-treasury-fund/?utm_source=snapi" target="_blank" rel="noreferrer noopener">Libeara and FundBridge Capital launch a tokenized United States treasury fund</a>

<a href="https://www.prnewswire.com/apac/news-releases/citi-and-fidelity-international-demonstrate-tokenized-money-market-fund-and-digital-foreign-exchange-swap-solution-302295142.html" target="_blank" rel="noreferrer noopener">Citi and Fidelity International demonstrate tokenized Money Market Fund and Digital Foreign Exchange Swap solution</a>

<a href="https://www.swift.com/news-events/press-releases/swift-ubs-asset-management-and-chainlink-successfully-complete-innovative-pilot-bridge-tokenized-assets-existing-payment-systems" target="_blank" rel="noreferrer noopener">Swift, UBS Asset Management, and Chainlink successfully complete innovative pilot to bridge tokenized assets with existing payment systems</a>

Web3 Company Receives Wells Notice; Data on SEC Crypto Enforcement Published

Web3 gaming company Immutable recently published a blog post announcing that the company has been issued a Wells notice by the SEC related to its IMX token. According to the blog post, in the company’s “very first interaction with the SEC, we were told a Wells notice would be issued to the company within the week. We then received it within hours.” The blog post states the company’s position that its IMX token is not a security and “If the manner of providing clarity to the industry is by winning against this attempted regulation by enforcement, then Immutable is happy to do so.”

In related news, the Blockchain Association, an industry advocacy organization, recently published a report stating that its members have collectively incurred $426 million in legal fees defending actions by the SEC. The report also provides findings from a survey designed “to understand how US Voters, Business-Decision Makers (BDMs) and Crypto Voters (those who own cryptocurrency and are likely to vote in the 2024 presidential election) perceive the digital asset landscape in America and the actions taken by the SEC to regulate the industry.” Among other findings, the survey found that “[v]oters … prefer clear rules and regulation over enforcement by a factor of 2:1,” “two-thirds of voters agree the SEC should wait for clearer guidelines from Congress” and “3 in 4 Crypto Owners think the SEC’s enforcement has been inconsistent.”

<a href="https://www.immutable.com/blog/defending-digital-ownership-in-gaming" target="_blank" rel="noreferrer noopener">Defending digital ownership in gaming: Immutable’s response to the SEC’s Wells Notice</a>

<a href="https://www.law360.com/fintech/articles/2254777?nl_pk=443df714-8612-4cc7-92bb-12102189ef09&utm_source=newsletter&utm_medium=email&utm_campaign=fintech&utm_content=2024-11-01&read_main=1&nlsidx=0&nlaidx=0" target="_blank" rel="noreferrer noopener">Crypto Lobby Says Members Spent $426M Fighting SEC</a>

<a href="https://theblockchainassociation.org/regulation-by-enforcement/" target="_blank" rel="noreferrer noopener">TRACKING THE SEC’S ANTI-CRYPTO CRUSADE</a>

<a href="https://theblockchainassociation.org/wp-content/uploads/2024/10/Voter-Perceptions-on-SEC-Enforcement-BA-Study-10.30.24-_vF.pdf" target="_blank" rel="noreferrer noopener">Blockchain Association SEC Survey - Key Insights</a>

New Data Published on Crypto Hacks and Russian Crypto Crime

According to recent reports, losses from crypto hacks in October totaled approximately $129.6 million, with the two largest incidents consisting of a $54 million hack of DeFi protocol Radiant Capital and a $36 million loss from a phishing attack on a “whale” cryptocurrency holder. The losses reportedly represent a 2.91 percent increase from losses in September.

Blockchain analytics company TRM Labs recently published a report on crypto crime in Russia. Among its many findings, the report reveals that (1) Russian-speaking ransomware groups accounted for at least 69 percent of all crypto proceeds from ransomware in 2023, exceeding USD 500 million; (2) Russian-language darknet markets comprised 95 percent of all crypto-denominated illicit drug sales on the dark web in 2023; (3) inflows to just one Russia-based crypto exchange, Garantex, accounted for 82 percent of crypto volumes belonging to all sanctioned entities internationally; and (4) over the past three years, over USD 85 million has been sent to wallets used by Russian and Chinese entities involved in procuring foreign equipment for the Russian war effort.

<a href="https://cointelegraph.com/news/crypto-hacks-exploits-losses-october-2024" target="_blank" rel="noreferrer noopener">October crypto losses reach $129M from hacks and exit scams</a>

<a href="https://www.trmlabs.com/post/crypto-crime-in-russia-ransomware-sanctions-evasion-and-disinformation" target="_blank" rel="noreferrer noopener">Crypto Crime in Russia: Ransomware, Sanctions Evasion, and Disinformation</a>

Weekly Blockchain Blog – November 11, 2024

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