
Robert A. Marsico
Partner
201-896-7165 rmarsico@sh-law.comFirm Insights
Author: Robert A. Marsico
Date: September 17, 2015
Partner
201-896-7165 rmarsico@sh-law.comBitcoin does not exist physically, although you must exchange hard currency to acquire it. Unlike cash, Bitcoin resides in your “electronic wallet” as a computer file. A network tracks the transfer of the computer files from purchaser to seller, but does not record the nature of the transaction. The value of Bitcoins can fluctuate significantly – often in a matter of minutes.
Virtual currency has not yet become a mainstream form of payment, owing in significant part to concerns about security and reliability. In its early days, Bitcoin was almost exclusively associated with nefarious activities, such as anonymously purchasing guns or drugs online. Even when used to make legitimate purchases, the lack of legal protections makes transactions more susceptible to fraud.
The technology behind Bitcoin is known as blockchain. In basic terms, blockchain serves as a public ledger of all Bitcoin transactions that have ever been executed. Each time a transaction is completed, a new block is added to the database in a linear, chronological order. Transactions are authorized using a mathematical formula, and each verified computer that is connected to the Bitcoin network receives a copy of the blockchain, which eliminates the need for banks.
While still in its infancy, several financial institutions are exploring ways to use blockchain to modernize and streamline their operations. In May, Nasdaq announced that it would begin using blockchain in several applications. It will first deploy the new technology to manage the issuance and transfer of stocks on its Nasdaq Private Market platform, which handles trades in private company stocks. According to Nasdaq CEO Bob Greifeld, blockchain is expected to help “modernize, streamline and secure typically cumbersome administrative functions.”
Nasdaq is not alone in exploring the potential of blockchain. As reported in the Wall Street Journal, Swiss bank UBS is working to develop a new “utility settlement coin,” which could be used by banks across the globe to as a basis to settle mainstream financial markets transactions, utilizing a blockchain based platform. Unlike Bitcoin, the new virtual coin would be tied to real-world currencies and central bank accounts. One of the goals of adopting blockchain technology is to enable financial institutions to settle trades in seconds rather than days. According to proponents of the proposal, the new coin could also result in lower risk, decreased operational costs, and greater efficiency in transactions between financial institutions.
Finally, as further evidence of blockchain’s potential for future usefulness in financial markets, Blythe Masters, the former JPMorgan executive credited with developing the concept of credit default swaps, is now consulting with a start-up focused on the use of blockchain to modernize the financial industry. She characterized the need to reduce the costs and inefficiencies in financial transactions as “one of the great challenges of our time.”
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
Author: Brian D. Spector
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Author: Dan Brecher
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
Author: Brian D. Spector
The bankruptcy legal landscape presents both challenges and opportunities for businesses navigating financial distress. Understanding current bankruptcy trends can help businesses make more informed and strategic decisions. Corporate Bankruptcy Filings Trending Upwards Bankruptcy filings continued to trend upwards in 2024. According to statistics released by the Administrative Office of the U.S. Courts, personal and business […]
Author: Brian D. Spector
In December, the U.S. Securities and Exchange Commission (SEC) announced charges against two privately held companies for failing to file a Form D notice, which is generally utilized for exempt securities offerings. Here, the SEC’s enforcement sends a strong message: compliance with regulatory requirements is not optional and failure to comply can have significant consequences. […]
Author: Kenneth C. Oh
On February 14, 2025, the Office of General Counsel (OGC) of the National Labor Relations Board (NLRB) under Acting General Counsel William B. Cowen issued Memorandum 25-05, “New Process for More Efficient, Effective, Accessible and Transparent Case handling.” The Memorandum rescinds nearly all of the Memoranda issued by his direct predecessor, Jennifer Abruzzo, setting the […]
Author: Matthew F. Mimnaugh
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!