In the News

Bo Harvey and John Servidio Pen Article on Blockchain Technology Risks

December 5, 2016

Information Law Journal published an article written by Los Angeles – Century City lawyers Bo Harvey and John Servidio examining the securities laws and regulations that will apply to the growing use of digital currencies, such as bitcoin and other digital assets in the offering, trading, clearing and settlement of securities and derivatives.

In the article, Harvey and Servidio note several caveats that companies should consider before using distributed ledger, or “blockchain” technology, or when they assess risk factors. The authors recommend periodic re-evaluation of those factors in view of the fast-changing and burgeoning technology, as well as the technological and regulatory landscape that will have to change to keep pace with it.

“Distributed ledger technology has the potential to disrupt and improve several functions within the financial industry,” they wrote. “As banks and financial technology companies seek to take advantage of its benefits and overcome its challenges, capital markets practitioners need to bear in mind that existing securities laws and regulations continue to apply, including providing meaningful and effective disclosure of risks related to the technology in any securities offerings and filings.”

The article, titled “Blockchain Risk Factors in Securities Offerings and Filings,” was published in the winter volume of Information Law Journal, a quarterly publication of the American Bar Association’s Section of Science & Technology Law Information Security and Electronic Discovery Digital Evidence committees.