Token Law: Legal Frameworks, Regulatory Compliance, and Liability Insights

This foundational session explores the technology behind digital asset tokens, covering blockchain basics, smart contracts, and the distinctions between utility, security, and governance tokens. Participants will examine token issuance models including ICOs, STOs, and airdrops, while learning how different token types are classified under U.S. law.

This session analyzes when tokens constitute securities under federal law by applying the landmark Howey test framework. Attendees will explore the critical jurisdictional boundaries between the SEC and CFTC, understanding how commodity versus security classification impacts regulatory obligations.

A brief intermission allowing participants to refresh before continuing with compliance-focused content. Use this time to reflect on securities classification concepts covered in the previous session.

This session covers the five pillars of anti-money laundering programs and know-your-customer requirements mandated by FinCEN and state regulators for token issuers. Participants will examine the fragmented state regulatory landscape, including case studies from Maryland and Indiana, alongside recent federal enforcement actions and legal precedents.

The final session addresses unique liability risks in token transactions, including transaction irreversibility, fraud exposure, and the absence of traditional payment protections. Attendees will learn how FTC Act Section 5 and CFPB oversight apply to digital asset activities, with focus on unfair and deceptive practices enforcement.