Crypto lawyer | Jiu Jitsu Black Belt at Rio BJJ | Head of Litigation at @ccsblaw | Board Chair @DallasDebate

Dallas, TX
Joined May 2009
NEW 🚨 Analysis: Copyright and Artificial Intelligence – Implications of Copyrightability 🧵🪡 — The U.S. Copyright Office’s Copyright and Artificial Intelligence, Part 2: Copyrightability report provides a structured examination of whether AI-generated works should receive copyright protection and under what conditions human input is sufficient to qualify as authorship. The report underscores that existing copyright law is adequate to address these questions and that AI-generated outputs, absent meaningful human involvement, are not copyrightable . The Copyright Office reaffirms that U.S. copyright law is fundamentally tied to human authorship. AI-generated content can be copyrightable only when a human contributes sufficiently creative expression beyond mere prompt engineering . The report argues that merely crafting text-based prompts does not meet the threshold for copyrightability. Some stakeholders advocated that extensive, structured prompting should constitute authorship, but the Copyright Office did not accept this view, emphasizing that prompts alone do not meet the originality standard . Works where AI is used as a tool, such as applying AI-generated special effects in a film, remain copyrightable. Human creativity must be determinable in the expressive elements of the work . The combination of AI-generated and human-created content can be protected under a derivative or compilation work framework. Copyright is granted to the human arrangement, selection, and coordination of AI-generated elements . Some legal experts suggested new legislation or sui generis rights for AI-generated works. The Copyright Office rejected this notion, arguing that existing copyright frameworks are sufficient and that legislative changes would be premature . Fully AI-generated works remain ineligible for copyright protection, reinforcing human authorship as a legal requirement . Granting copyright to AI-generated works could flood the creative market with automated content, disincentivizing human creativity . The ruling does not fully resolve the complexities of ownership when AI-generated content is substantially modified by humans, leaving ambiguity in many cases . Determining whether a work contains sufficient human authorship will require case-by-case assessments, potentially overloading copyright offices and legal systems . AI firms cannot rely on copyright protections for AI-generated outputs, but they can still protect AI models and datasets through patents and trade secrets . Since software is protected under copyright law, AI-generated code raises questions about whether human-authored contributions are sufficient for protection . The report does not address whether AI-generated content derived from copyrighted works infringes existing copyrights, a key issue that remains unresolved . Countries such as the UK recognize AI-generated works under a different legal framework, which could lead to conflicts in cross-border copyright enforcement . Media companies must ensure that AI-generated content is supplemented with sufficient human authorship to qualify for copyright, potentially altering content creation workflows . As AI technology advances, future court decisions and legislation may redefine what constitutes human authorship, potentially altering the balance of copyright protections . The U.S. Copyright Office’s stance underscores the enduring importance of human creativity in copyright law. While AI-assisted works remain eligible for protection under certain conditions, purely AI-generated content remains in the public domain. This framework ensures that copyright law continues to serve its fundamental purpose—encouraging human authorship—while addressing the challenges presented by AI-generated content. However, as AI technology progresses, further legal refinements and court decisions will be necessary to resolve ongoing ambiguities. /1 LINK:copyright.gov/ai/Copyright-a…
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Privacy wins. Today the Fifth Circuit held that @USTreasury’s sanctions against Tornado Cash smart contracts are unlawful. This is a historic win for crypto and all who cares about defending liberty. @coinbase is proud to have helped lead this important challenge. 1/6
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ETHEREUM SURVIVES THE SEC. Today we’re happy to announce a major win for Ethereum developers, technology providers, and industry participants: the Enforcement Division of the SEC has notified us that it is closing its investigation into Ethereum 2.0. This means that the SEC will not bring charges alleging that sales of ETH are securities transactions.
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We appreciate the Second Circuit confirming today what is clear under the federal securities law: there's no private liability for the secondary trading of digital assets on exchanges like Coinbase. Why? Because contracts matter. 1/2
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The way that you become truly exceptional at something is by working insanely hard at something that comes naturally easy to you.
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🚨 BREAKING: SAM BANKMAN-FRIED OF FTX SENTENCED TO 25 YEARS IN PRISON 🚨
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1/ The court just decided Coinbase's motion for judgment on the pleadings. Overall, SEC wins. There are some positives: it's great for DeFi that Wallet is not a broker, and there's good language on other issues like Howey's "investment of money" prong. courtlistener.com/docket/674…
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BREAKING‼️ Cryptocurrency exchange Kucoin and two of its founders criminally charged with bank secrecy act violations and unlicensed money transmission offences.
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Today, we @fund_defi sued the SEC. It has everything to do with airdrops + stopping the SEC’s regulation by enforcement crusade against our industry. 🧵 xitter.cf/fund_defi/status/17722…
🚨Today, DEF and @BebaCollection sued the SEC🚨 defieducationfund.org/_files… The crypto industry is facing an existential threat from an overzealous regulator who is abusing its power by targeting our industry through unending aggressive enforcement actions. It’s time for the court to put an end to it.🧵
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Today @coinbase filed our opening brief in the Third Circuit challenging the SEC’s denial of our rulemaking petition. Tl;dr: the SEC’s denial is arbitrary and capricious, an abuse of discretion, and a violation of the Administrative Procedures Act. 1/7 assets.ctfassets.net/c5bd0wq…
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This is excellent data from the hard-working folks at @ERCOT_ISO. As the graph shows, bitcoin miners are extremely price-responsive and therefore not at risk to be consuming power during peak demand times. I wish the @EIAgov and @SenWarren would take 5 minutes to look at this.
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Astounding. I've never seen anything quite like this in more than 30 years of representing clients adverse to the SEC. I actually think this voluntary dismissal could make it more likely that the SEC lawyers involved in the misrepresentations to the Court will be sanctioned.
Replying to @GenslerArchive
@GaryGensler this disgrace falls under your leadership, or the lack thereof. First, your lawyers were described by a federal judge as hypocrites lacking faithful allegiance to the law in the @Ripple case. Later, an Appellate Court ruled your denial of a spot #BTC ETF was arbitrary and capricious in the @Grayscale case. Despite those incredible findings - findings that would make any lawyer or leader cringe from embarrassment and humiliation - your agency’s lawyers continued to act with a complete disregard for the truth, and for justice. Now, you run away, attempting to shield your unethical lawyers from facing the very law they swore to uphold.
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Literally the wisest person on the internet.
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SEC v. @Coinbase Update V (last) The long awaited hearing is over. As expected, there was no ruling from the Judge. There were no knockout blows delivered by either side and, frankly, not a lot of high points over the course of the 5 hour hearing. The Judge was the star of the show. She was exceptionally well prepared. She had drafted 14 pages of questions for the hearing. She understood the terminology and the technology. She is the kind of Judge you want to handle a case of this magnitude. There was some interesting banter about the relative merits of Judge Rakoff's ruling in the Terraform Labs case and Judge Torres' decision in @Ripple. Both Judges work in the same building with Judge Failla. But the Judge gave nothing away in terms of how she viewed the reasoning of each of those cases. There was a general consensus that tokens are not "in and of themselves securities" but the SEC argued, nonetheless, that transactions of tokens on secondary trading platforms like Coinbase can still constitute sales of investment contracts. The SEC lawyers were better prepared than when they were caught flat footed in July and were generally effective making their case. The lead lawyer for Coinbase, William Savitt of Wachtel Lipton, was methodical in his approach to answering the Judge's questions. Each side was given a few minutes of summation time to say whatever they wanted at the end and, in that space, Savitt definitely stepped up his game and finished with some very strong closing points. I watched the Judge carefully. She is either genuinely undecided about how to rule or she is a great actor. The one message I took away was she is uncomfortable with the idea of dismissing the case on the basis of the Major Questions Doctrine. My guess (and it's just a guess) is she is going to allow the case to go forward to discovery, like the Ripple case. But, I continue to believe, as noted in my pinned tweet, that Coinbase will ultimately win the case in the end. Congress, of course, could put a stop to the whole thing with adoption of comprehensive crypto legislation but that won't happen this year. I expect the Judge will issue her written decision on the motion within the next 3 months. Not legal advice. You get what you pay for.
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Today we made arguments in our motion to bounce the @SECgov suit against @Coinbase. After hours and hours, this much remain clear: the SEC continues to claim broad authority over all investments while offering no limiting principle to its definition of investment contract. 1/4
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Alex More retweeted
Favorite moment of argument so far: SEC— “the tokens themselves are not a security” Failla— “that’s what the folks in the back table think (Coinbase). And they are wondering why we are here”
Oral arguments for the SEC's case against Coinbase are starting now! Listen in here: (888) 363-4749, access code 5123533
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TLDR: Treasury and the IRS have announced that businesses do not have to report receipt of digital assets >$10k until they issue new regulations. This isn't a surprise, yet it runs counter to the bad guidance many people have been posting. Be careful who you follow.
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BigLaw firm Winston & Strawn was sued today for allegedly plagiarizing another firm's Rule 12 motion. Hsuanyeh Law Group registered one of its Rule 12 motions with the Copyright Office and says Winston copied it "nearly verbatim" in a consolidated case.
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Community Notes for the win.
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