Digital Assets Download - Your Cure for “Zero Knowledge” of Digital Assets
In the digital assets world, we’ve become accustomed to taking lemons and making lemonade, and our latest Digital Assets Download features one such opportunity in the world of tax losses and crypto bankruptcies. In this edition we also talk about the Cowboy State’s latest digital assets law, the Stable Token Act, and how it could create the first government-issued stablecoin in the United States. Plus, don’t miss two reports from Europe, including insights on MiCA, the landmark digital assets law, and key takeaways from NFT.NYC. Finally, as foreshadowed above, be sure read our “Lingo” for this week and find out why zero-knowledge can actually be a good thing.
For the Uninitiated: Digital Assets Download is a curated mix of insights and headlines that provide a Layer 3 Legal Perspective™ on the digital assets multiverse—created by Mayer Brown’s global Digital Assets, Blockchain & Cryptocurrency group. (Check out all of our previous editions of the Digital Assets Download)
The Lead Block
News Node
Crypto Tax Guidance Could Come in '12-ish' Months, Says US IRS Official
Franklin Templeton Announces the Franklin OnChain US Government Money Fund Surpasses $270 Million in Assets Under Management
Societe Generale's Crypto Division Introduces Euro Stablecoin on Ethereum
DAOs Could Get Official Standing Under Proposed California Law
Bitcoin Survived SVB And Silvergate; It Will Survive First Republic’s, Too
Blockchain Association Leaves New York as Federal Regulatory Fight Looms
More Chinese Government Employees Will Be Paid in Digital Yuan: Report
Hong Kong SFC to Issue Crypto Exchange License Guidelines in May
Coinbase Launches International Crypto Derivatives Exchange
Mastercard Seeks to Expand Crypto Card Tie-ups
US SEC Sees Decentralized Crypto Platforms as Exchanges, Seeks Public Input
Industry Heavyweights Respond to UK’s Crypto Asset Regulatory Framework Proposal
Select Events
Selected events for deeper dives into different parts of the digital assets and DeFi world.
“Blockchain and Digital Assets—What Are They and Why They Might be Relevant to You” at the Equipment Leasing and Finance Association (ELFA) Legal Forum
On Monday, May 8, Mayer Brown partners Barbara Goodstein and Joe Castelluccio will speak at the Equipment Leasing and Finance Association (ELFA) Legal Forum at the Marriott Sanibel Harbour Resort & Spa in Fort Myers, Florida. Their panel, “Blockchain and Digital Assets—What Are They and Why They Might Be Relevant to You,” will provide some high-level background—with pictures!—on blockchain technology and how it works. They will also discuss some reasons why equipment leasing and finance practitioners may be interested in this technology and its possible uses. For more information, please visit the forum website.
US House of Representatives - “The Future of Digital Assets: Measuring the Regulatory Gaps in the Digital Asset Markets”
The Joint Financial Services-Agriculture Subcommittee of the US House of Representatives will hold a hearing on the future of digital assets regulation on Wednesday, May 10, 2023, at 9:30 a.m.
Tokenization and Blockchain at Republic Capital Group’s Annual Wealth Management Summit at the Fordham Gabelli School of Business
On May 5, Mayer Brown partner Joe Castelluccio discusses tokenization and blockchain on a panel focused on “Need-to-Know Developments” in wealth management law.
Learn the Lingo
Zero-Knowledge Proof
A zero-knowledge proof is a cryptographic technique that allows the sharing of cryptographically encrypted information while keeping the underlying data private, including personally identifiable information that may be part of the data.
Blockchains are generally designed to be transparent, with each node able to see and download all data stored on the ledger. Zero-knowledge proofs allow the use of private datasets in applications (such as smart contracts) without revealing the underlying data. As a result, zero-knowledge proofs are generally considered to offer greater privacy in blockchain transactions.
In general, in a zero-knowledge proof, one party (the prover) can prove to another party (the verifier) the truth of a statement without sharing the statement’s contents or revealing how the prover discovered the truth. The proof works by having the verifier ask the prover to perform a series of actions that can only be performed accurately if the prover knows the underlying information.
A few applications where zero-knowledge proofs can be used include money transfers and identity authentication.
Writing on the Wall, Translating ‘Crypto’ Terms with Mayer Brown
From Airdrop to Wrapped Token, our illustrated glossary, “Writing on the Wall, Translating Securities with Mayer Brown,” has been updated with additional digital assets and cryptocurrency terms. Check out our “featured” list for the crypto terms and the full list of terms.
