Digital Asset Securities & Derivatives Analysis

Katten provides comprehensive legal analysis for determining the regulatory classification of digital assets, cryptoassets, and blockchain-based financial instruments. The firm's Financial Markets and Regulation practice includes team members who are former regulators from SEC, FINRA, CFTC, and DOJ, bringing unparalleled regulatory insight to the complex question of whether digital assets constitute securities or commodities.

Securities Law Analysis

Cryptoassets Classification: The firm provides deep expertise in applying securities and derivatives law to digital assets, conducting comprehensive regulatory analysis for token projects to assess whether cryptoassets constitute securities under the Howey Test and applicable securities laws. This includes evaluating token distribution mechanisms, utility versus investment characteristics, and decentralization factors that influence regulatory classification.

Broker-Dealer Compliance: Katten offers regulatory compliance and advisory services for broker-dealers operating in the cryptoassets space, including SEC and FINRA compliance program development and ongoing regulatory strategy for digital asset intermediaries navigating the evolving regulatory landscape.

Derivatives & Commodities Expertise

Futures & Derivatives: The firm brings deep knowledge and practical, real-world experience in futures and derivatives markets, including crypto derivatives. Katten achieved a notable regulatory first: CFTC approval for a client to operate as both an execution facility and clearing organization for bitcoin-based derivative contracts—demonstrating the firm's ability to navigate novel regulatory territory.

CFTC Compliance: The practice provides comprehensive understanding of commodity trading regulations, CFTC registration and compliance requirements, and regulatory strategy for digital asset derivatives platforms seeking to launch or expand commodities-based crypto products.

Structured Products & Complex Instruments

Digital Asset Products: Katten structures innovative financial products including digital asset-based instruments, providing legal services for blockchain-based derivatives and conducting regulatory analysis for complex cryptoasset products that may involve multiple regulatory frameworks.

Translating Innovation for Regulators

The firm emphasizes translating complex blockchain innovations for both clients and regulators, ensuring regulatory compliance while enabling innovation. The practice serves exchanges, clearing organizations, brokers, traders, investment funds, and other market participants navigating the "uncharted legal territory" of digital asset regulation. With former SEC, FINRA, CFTC, and DOJ regulators on the team, Katten brings insider perspective to regulatory classification questions.