Blockchain technologies are changing the way many businesses operate. Distributed ledgers, smart contracts, and cryptocurrency are transforming businesses and opening new avenues for innovation and investment.
As one of the first law firms in New Jersey to have successfully represented crypto and blockchain clients in litigation, Dressel/Malikschmitt has made a name for itself in this emerging area of the law. We advise clients who are building businesses in mining or trading crypto, investing in crypto assets, or leveraging blockchain technologies so that they may enhance their businesses, and fight for them where disputes arise.
How Can a Cryptocurrency Lawyer Help Me?
Cryptocurrency has the potential to shake the foundations of a multitude of established industries. It is important to work with legal counsel that understands the potential and perils of digital currencies and the blockchain.
But it is equally important to work with a firm that has industry experience, and knows how to draft and review contracts, resolve disputes, and interpret and comply with regulations.
Dressel/Malikschmitt checks all of these boxes.
Cryptocurrency in Business
Any business owner or investor that is serious about integrating cryptocurrency into their plans should consult with an attorney before opening their digital wallet. Understanding the legal implications of any new technology is critical, especially in a semi-self-regulated ecosystem where the risks are uncertain, and the costs of mistakes can be high.
Dressel/Malikschmitt has advised on many crypto-related transactions critical to our clients’ interests. Our attorneys can:
- Draft business formation and governance documents for entities entering the industry
- Assist with intellectual property issues
- Facilitate meetings between our clients and potential investors
- Conduct legal due diligence on purported crypto businesses
- Represent clients before regulators and law enforcement officials
- Advise clients on ways to incorporate blockchain technologies into their business while complying with ever-changing regulations
Cryptocurrency contracts & disputes
At Dressel/Malikschmitt, we help our clients who are creating, building, and investing in the next big thing secure their legal rights and protect them from legal liability. Oftentimes, this means drafting innovative agreements to meet our clients’ needs.
Cryptocurrency contracts & disputes
At Dressel/Malikschmitt, we help our clients who are creating, building, and investing in the next big thing secure their legal rights and protect them from legal liability. Oftentimes, this means drafting innovative agreements to meet our clients’ needs.
Drafting crypto contracts
Drafting a document that spells out the parties’ vision of success sounds simple, but these are often complex agreements that lay the foundation for multi-million dollar relationships. The terms must incorporate traditional legal protections, but also clear the way for growth and innovation, while avoiding challenges and pitfalls.
Walking this line is not easy, but it is something Dressel/Malikschmitt does well.
Smart contracts
When appropriate, our team of experienced attorneys may also assist clients with so-called smart contracts that live on the blockchain and have some self-executing features. The automated terms of these contracts must be carefully drafted to ensure they accurately reflect the desires of the parties, which takes legal and technical know-how.
Smart contracts
When appropriate, our team of experienced attorneys may also assist clients with so-called smart contracts that live on the blockchain and have some self-executing features. The automated terms of these contracts must be carefully drafted to ensure they accurately reflect the desires of the parties, which takes legal and technical know-how.
When disputes arise
The most important parts of many business contracts are the sections detailing what happens if a disagreement arises. Dressel/Malikschmitt makes sure the cryptocurrency contracts we draft and review for our clients adequately protect them if common business disputes arise:
- What happens if one party thinks the other has not performed their contractual obligations?
- When fraud or some other sort of malfeasance is alleged, what remedies are available?
- How should disagreements between business partners be resolved?
- What if the parties want to sever their relationship and move in a different direction?
- How will things shake out if the other party insists there is no contract?
- What happens when disagreements arise that are NOT addressed by the contract?
And this is just the tip of the iceberg. A good contract will anticipate worst-case scenarios and help make resolving them easier.
Cryptocurrency litigation
When a dispute cannot be resolved by referencing the contract or getting everyone around the negotiating table, Dressel/Malikschmitt is prepared to litigate. We were one of the first firms in New Jersey to litigate a cryptocurrency dispute, and all our crypto clients benefit from that experience.
We guide our clients through every step of the litigation process—from pretrial negotiations and discovery, to closing statements. We understand how important it is to counsel our clients on the options available to them at each stage of the trial. Our clients decide which way they want to go, and we help them get there.
What Laws and Regulations Apply to Cryptocurrency?
One of the defining features of cryptocurrency is that it is not issued by a central government or central bank. In theory, this makes each currency self-regulating. The reality is a bit more complicated.
As crypto has become more popular, governments have stepped up regulation of its creation and use. The IRS, the Securities and Exchange Commission, and Commodity Futures Trading Commission, as well as many states, are increasing their regulation of digital assets and blockchain technology. It is likely that Congress will also begin to pass crypto-specific laws in the near term.
Providing advice on compliance and representation before regulatory bodies is a growing part of what we do as legal advisors and outside general counsel to cryptocurrency businesses, investors, and users.
What are the Advantages and Disadvantages of Cryptocurrency?
We can’t predict the future, and we aren’t going to make business decisions on your behalf. What we can do is counsel you on the legal advantages, disadvantages, and risks involved with various cryptocurrency ventures. We can conduct due diligence on potential investments and partners, draft contracts that protect your interests, and aggressively defend you if a dispute arises.
Speak with a Cryptocurrency and Digital Currency Lawyer
Dressel/Malikschmitt partners Andrew Dressel and Chris Malikschmitt have become the go-to advisors for many New Jersey business owners and investors with legal questions about cryptocurrency. Their knowledge of the blockchain and cryptocurrency, coupled with their experience resolving complex business disputes at the negotiating table and in the courtroom, is invaluable.
Whether you are an experienced crypto business owner, or simply crypto-curious, Dressel/Malikschmitt is here to assist you. Please contact us today to schedule a meeting.
Cryptocurrency Law FAQ
Cryptocurrency is a digital asset that can be used as a medium of exchange or store of value, much like physical money is used in the real world. It is securely stored in digital wallets, and transactions using it are recorded on a decentralized network of virtual ledgers called the blockchain, which makes it nearly impossible to counterfeit, double-spend, or steal.
Popular forms of cryptocurrency include Bitcoin (BTC), Ethereum (ETH), and Tether (USDT), but there are a multitude of digital currencies out there.
It is legal to purchase and use cryptocurrency, just as one would any other asset. However, there are certain crypto-backed trading platforms that are not legitimate, or not appropriate for U.S. citizens. If you plan on making a significant investment in cryptocurrency, you should consider consulting with a crypto-friendly law firm like Dressel/Malikschmitt. If you have been contacted by law enforcement officials about your crypto holdings, it is imperative you speak with an experienced counsel who can advise you on crypto and criminal law, like Andrew Dressel and Christopher Malikschmitt can.
Many of the legal issues impacting cryptocurrency arise because there is a tension between innovation and regulation. The industry is rapidly changing and growing, and regulators are struggling to keep up. Other legal issues facing crypto uses and companies come from traditional business, consumer, and contract law. Any time you have one entity or person interacting with another, you have the potential for legal conflict. Lawyers like those at Dressel/Malikschmitt who understand crypto, but also have a firm foundation in traditional legal topics are eager to assist as the interest in cryptocurrency grows.
If you are participating in the cryptocurrency industry, whether as the owner of a company such as a mining or trading operation, or simply as an investor with significant blockchain assets, you need to work with an attorney that understands crypto. Making sure your assets are legally secure, and you are in compliance with the patchwork of changing regulations in this area, is not something you can afford to ignore. You may also need counsel if government regulators or law enforcement officials begin asking you questions, or you find yourself in a heated dispute with others in the industry.
Dressel/Malikschmitt represents crypto clients in a variety of business and commercial disputes. We handle everything from contract negotiation, review, and drafting, to complex litigation and regulatory actions.