The SEC's Climate and ESG Task Force Strikes

Crypto-Rich Puzzle Over How to Pass On High-Risk Wealth to Heirs

J.W. Verret has a plan for his heirs to follow when he dies. And it’s unlike anything estate planners could have imagined just a decade ago.

That’s because the middle-aged law professor has spent two years building up various crypto holdings. To access that wealth, should he meet an untimely end, his three children may have to go through a 25-page document with details on websites to navigate, special wallets to download, web applications to connect and exchanges to cover.

SEC Charges Brazilian Mining Company with Misleading Investors about Safety Prior to Deadly Dam Collapse

“Many investors rely on ESG disclosures like those contained in Vale’s annual Sustainability Reports and other public filings to make informed investment decisions,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement. “By allegedly manipulating those disclosures, Vale compounded the social and environmental harm caused by the Brumadinho dam’s tragic collapse and undermined investors’ ability to evaluate the risks posed by Vale’s securities.”

The Rise of Crypto SPACs

Digital assets and special purpose acquisition companies (“SPACs”) have been two of the hottest topics in the financial world over the past few years, and, unsurprisingly, the topics overlap with increasing frequency. We have set forth below a high-level overview of what SPACs are (including an explanation of the documentation involved in a crypto-related SPAC), guidance on what makes cryptocurrency-related SPACs unique and difficult to execute, a list of historical examples of such SPACs that have successfully completed an acquisition, a pipeline of potential crypto SPACs and some expectations for the future.