Bench & Bar

JUL 2018

The Bench & Bar magazine is published to provide members of the KBA with information that will increase their knowledge of the law, improve the practice of law, and assist in improving the quality of legal services for the citizenry.

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29 BENCH & BAR | with IBM to "develop a 'smart' insurance policy that uses blockchain to manage complex international coverage[.]" 5 Many other large companies are experimenting with similar technology as well. REGULATION IS COMING. ough Bitcoin has enjoyed what some would consider a "wild west" atmosphere of no regulation or oversight, regulation is expected, and soon. Currently, regulators struggle to fit Bitcoin and other cryptocurrencies into existing regulatory framework. Is cryptocurrency a commodity or a security? e U.S. Senate Committee on Banking, Housing, and Urban Affairs held hearings in February 2018 where testimony from both the SEC and the Commodity Futures Trading Commission (CF TC) provided testimony to lawmakers about crypto- currencies and their views on regulation. 6 e general reaction among cryptocurrency investors and industry leaders is that regu- lation, in one form another, is coming soon. CONCLUSION Bitcoin and the blockchain technology are changing our world. As lawyers, we must recognize these changes and be prepared for them to do our job effectively. ENDNOTES 1. U.S. Commodity Futures Trading Commission, "CFTC Orders Bitcoin Options Trading Plat- form Operator and its CEO to Cease Illegally Offering Bitcoin Options and to Cease Operat- ing a Facility for Trading or Processing of Swaps without Registering," Sept. 17, 2015, available at http://www.cftc.gov/PressRoom/PressReleases/ pr7231-15. 2. Edmund DeMarche, Mayor, police chief in strug- gling Kentucky coal town to donate salary in Bitcoins to spur economy, FoxNews Dec. 5, 2013 available at http://www.foxnews.com/us/2013/12/05/ struggling-kentucky-coal-town-looks-to-bitcoin- to-spur-economy.html. 3. Eric Lichtblau, In accepting Bitcoins, Rand Paul Raises Money and Questions, New York Times April 9, 2015 available at https://www.nytimes. com/2015/04/10/us/politics/in-accepting-bit- coin-rand-paul-raises-money-and-questions. html?_r=0. 4. See De Souza v. Kerley, Breathitt Circuit Court Case No. 15-CI-055; Cyrus Farivar, After Bitcoin loan goes south, judge rules man must repay over $67,000, ArsTechnica June 19, 2015 available at https://arstechnica.com/tech-policy/2015/06/ after-bitcoin-loan-goes-south-judge-rules-man- must-repay-over-67000. 5. Suzanne Barlyn, "AIG teams with IBM to use blockchain for 'smart' insurance policy", Reu- ters ( June 15, 2017) available at http://www. reuters.com/article/us-aig-blockchain-insur- ance-idUSKBN1953CD 6. U.S. Senate Committee on Banking, Hous- ing, and Urban Affairs, "Virtual Currencies: e Oversight Role of the U.S. Securities and Exchange Commission and the U.S. Commod- ity Futures Trading Commission," available at https://www.banking.senate.gov/hearings/virtu- al-currencies-the-oversight-role-of-the-us-securi- ties-and-exchange-commission-and-the-us-com- modity-futures-trading-commission. R. MORGAN SALISBURY is an asso- ciate attorney in the Fort Wright, Ky., office of Lewis Brisbois Bisgaard & Smith. He is licensed in both Indiana and Kentucky and his practice focuses on civil litigation. Salisbury earned his law degree from the Salmon P. Chase College of Law at Northern Kentucky University, where he graduated cum laude. While in law school, he served on the editorial board of the Northern Kentucky Law Review. He also holds a Bachelor's degree in history from Morehead State University, where he graduated magna cum laude. Salisbury closely follows innovative technological trends, including the recent rise of cryp- tocurrencies such as Bitcoin. ABOUT THE AUTHOR DID YOU FIND THIS ARTICLE INTERESTING? Be on the lookout for the next issue which focuses on Cryptocurrency.

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