Partner Jeffrey Alberts, head of Pryor Cashman’s White Collar Defense and Investigations Practice and Bertrand Fry, co-chair of the Investment Management Group, authored the article entitled, “Is Bitcoin a Security” which appeared in the Winter 2015 issue of the Boston University School of Law Journal of Science & Technology Law.

The Securities and Exchange Commission (SEC) has not yet publicly taken a position on whether Bitcoin is a security. Whether or not Bitcoin is a security is an important consideration for participants in the Bitcoin market. If Bitcoin were found to be a security, then sellers of Bitcoin, exchanges for the transfer of Bitcoins, and special purpose vehicles formed to hold Bitcoin would be subject to regulatory requirements and potential penalties for failing to meet these requirements. This article addresses the question of whether Bitcoin is a security by applying existing case law to the sale and mining of Bitcoin.