What are fintech, blockchain, and cryptocurrency laws?
Fintech, blockchain, and cryptocurrency law encompasses the regulatory, transactional, and compliance frameworks that govern financial technology companies, digital asset platforms, decentralized finance (DeFi) protocols, blockchain infrastructure, and cryptocurrency businesses.
This area of law includes navigating evolving federal and state regulations, structuring business operations to ensure compliance, securing funding, managing risk, and protecting intellectual property. With technology rapidly outpacing regulation, legal counsel in this space requires a sophisticated understanding of both financial systems and technological innovation.
Who Needs Fintech, Blockchain, and Cryptocurrency Legal Services?
- Startups and entrepreneurs developing blockchain-based solutions, launching fintech platforms, or creating cryptocurrency exchanges
- Crypto exchanges, OTC desks, trust companies, and liquidity providers engaging in cross-border or multi-jurisdictional operations
- Non-custodial and custodial wallet providers seeking guidance on compliance, contracts, and consumer protections
- Bitcoin ATM operators navigating complex regulatory landscapes
- NFT platforms and projects managing IP, contracts, and securities-related concerns
- DAOs (Decentralized Autonomous Organizations) requiring entity structuring, governance frameworks, and regulatory guidance
- Fintech companies launching payment solutions, lending platforms, or digital asset services
- Investors and venture funds conducting due diligence on crypto and blockchain startups
- Banks and credit unions that are onboarding fintech and crypto-related companies
If your business operates at the intersection of
finance and
technology, you face unique legal challenges that require specialized support.
How Cogent Law Can Help
At Cogent Law, we bring decades of combined experience in financial regulation, emerging technology, and strategic business advisory. Our team provides:
- Licensing: Assisting companies with money service business licensing at the federal level, state money transmitter licensing, trust company licensing in states like South Dakota and Nevada, and more
- Regulatory Compliance Support: Ensuring adherence to FinCEN, SEC, CFTC, and state-level regulations
- Strategic Business Structuring: Entity formation, governance design, and joint venture facilitation
- Transactional Counsel:
Drafting and negotiating contracts, partnership agreements, and mergers and acquisitions, like acquiring OCC, FDIC, and Fed Reserve-chartered banks and credit unions, or international financial entities based in Puerto Rico.
- Risk Mitigation: Navigating regulatory uncertainties and minimizing exposure to enforcement actions
- Intellectual Property Protection: Securing and defending IP rights related to blockchain innovations and fintech products
- Fundraising and Capital Strategy: Assisting with private placements, securities offerings, and regulatory filings
- Ongoing Advisory: Acting as outside general counsel for legal matters as your company grows and scales
Our integrated approach bridges law, technology, and business strategy, positioning clients for sustainable growth.
Benefits of Hiring an Attorney for Fintech, Blockchain, and Cryptocurrency Matters
- Regulatory Clarity: Avoid costly missteps by understanding and complying with complex financial regulations.
- Risk Reduction: Minimize legal exposure in a landscape where enforcement and regulation are rapidly evolving
- Operational Confidence: Launch and scale your business with the assurance that your legal foundations are sound.
- Investor Readiness: Attract funding by demonstrating compliance and legal diligence
- Strategic Advantage: Gain access to attorneys who understand not only the law but also the technology and business dynamics driving fintech and blockchain innovation.
Legal expertise is not just about risk avoidance—it’s a key enabler of innovation and growth.
What to Expect When Working With Cogent Law
1. Consultation & Assessment: We begin with a comprehensive review of your business model, goals, and potential regulatory exposures.
2. Tailored Legal Strategy: Based on your specific needs, we develop a strategic plan addressing compliance, contracts, structuring, and more.
3. Transparent Pricing: Wherever possible, we offer flat-fee arrangements, so you know upfront what to expect—no surprises.
4. Collaborative Engagement: We act as your strategic partner, maintaining clear communication throughout every stage of your business development.
5. Ongoing Support: As regulations evolve and your business scales, we remain by your side to provide continued legal guidance and support.
6. Availability: Attorneys that answer the phone when you call!
Operating in Fintech, Blockchain, or Crypto? Read This First.
Innovation in financial technology moves fast—but legal compliance doesn’t wait.
We created a free guide, “Navigating Legal Challenges in Fintech, Blockchain, and Cryptocurrency,” to help founders, operators, and investors understand how to:
- Comply with FinCEN, SEC, CFTC, and state regulations
- Determine whether your token is a security
- Structure DAOs and fintech entities correctly from the start
- Protect your IP, enforce contracts, and manage investor risk
- Secure compliant banking relationships and licensing (including MTLs)
- Scale with legal confidence—without getting caught off guard by regulators
If your company operates at the intersection of finance and innovation, this guide is for you.
It was developed by attorneys at Cogent Law Group, who advise fintech and crypto businesses across the U.S. and internationally—from early-stage ventures to scaling platforms and investors conducting due diligence.
FAQ—Fintech, Blockchain, and Cryptocurrency Legal Services
1. Is my cryptocurrency business required to register with federal or state regulators?
It depends on the nature of your business operations. Entities such as exchanges, custodial wallets, and payment processors may need to register with FinCEN as a Money Services Business (MSB) and comply with applicable state licensing regimes. The regulatory landscape is complex and varies by jurisdiction—Cogent Law can assess your specific operations and advise on registration and compliance obligations.
2. What legal risks should I be aware of when launching a blockchain-based startup?
Key risks include non-compliance with securities laws, money transmitter laws, data privacy violations, intellectual property disputes, and potential exposure to anti-money laundering (AML) and know-your-customer (KYC) enforcement. Working with experienced legal counsel is essential to identify and mitigate these risks proactively.
3. Do all cryptocurrencies count as securities?
Not necessarily. Whether a digital asset is classified as a security depends on the specific facts and circumstances, often analyzed through the "Howey Test." Some tokens may be considered commodities or currencies instead. Our attorneys can provide security token opinions to clarify regulatory classifications for your assets.
4. How can legal counsel help with fundraising in the crypto and fintech sectors?
Legal counsel ensures that fundraising efforts—such as private placements, token offerings, or equity sales—comply with relevant securities laws and avoid enforcement actions. We assist with structuring the offering, preparing necessary disclosures, and managing investor agreements.
5. What are “No Action Letters” or "Determination Letters,” and should my business pursue one?
A No Action Letter, or Determination Letter, is a formal communication from a regulator indicating that they will not take enforcement action based on the facts presented. For fintech and crypto companies, obtaining such letters from state regulators or agencies like the SEC can provide clarity and reduce legal uncertainty.
6. How can blockchain companies protect their intellectual property?
While blockchain itself is often open-source, companies can protect proprietary aspects of their technology through patents, trademarks, and trade secrets. Legal counsel can help identify protectable elements and navigate the application process, as well as defend IP rights in the event of infringement.
7. Are decentralized autonomous organizations (DAOs) legally recognized entities?
Recognition of DAOs as legal entities varies by jurisdiction. Some states, like Wyoming, have enacted laws providing specific frameworks, while other regions lack formal recognition. We can advise on appropriate structuring, governance documentation, and regulatory considerations for DAOs.
8. How can fintech companies ensure compliance with consumer protection laws?
Fintech businesses must adhere to a range of consumer protection laws related to data privacy, lending practices, advertising, and anti-discrimination. Compliance programs must be tailored to the specific services offered and jurisdictions in which the company operates. Our team assists with drafting compliant terms of service, privacy policies, and data security protocols.
9. What is the role of smart contracts in fintech and blockchain, and do they require legal review?
Smart contracts are self-executing agreements coded into blockchain systems. While they automate transactions, they still carry legal implications related to enforceability, consumer protection, and liability. Legal review ensures that smart contracts align with applicable laws and protect your interests.
10. How do global regulations affect my blockchain or fintech business?
Operating internationally introduces complex compliance challenges, as each country has distinct rules for financial services, data protection, and digital assets. We assist clients in navigating cross-border regulatory requirements, assessing risks, and structuring operations to minimize legal exposure.
11. Can Cogent Law help with securing banking relationships for fintech or crypto businesses?
Yes, Cogent Law has relationships with many crypto- & fintech-friendly financial institutions. Many traditional financial institutions are cautious about engaging with fintech or crypto companies due to regulatory uncertainty. We assist clients in presenting their compliance posture effectively and negotiating banking relationships that support their business operations.
12. What are the key considerations when expanding a crypto or fintech business into new markets?
Expansion requires careful evaluation of licensing requirements, tax implications, data protection laws, and cultural considerations. Legal counsel ensures that your expansion strategy complies with all relevant regulations and mitigates risk.