VC Law: Episode 49: Crypto Funds with Karl Cole-Frieman of Cole-Frieman & Mallon LLP

Host Gary J. Ross speaks with Karl Cole-Frieman of Cole-Frieman & Mallon LLP about forming and operating funds investing in digital assets. Karl discusses his firm’s early work with crypto funds and explains that most crypto funds generally resemble hedge funds, though with some unique challenges. Karl explains the difficulties of applying the SEC’s Custody Rule when tokens cannot be held by a qualified custodian, and the use of self-custody. Gary and Karl also discuss commodities issues such as CPO registration and the CFTC’s off-exchange trading rule, as well as the challenges U.S. managers face when seeking access to non-U.S. crypto exchanges.