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99 N.Y.U. L. Rev. Online 1 (2024)

handle is hein.journals/nyulro99 and id is 1 raw text is: SUING FOR A BIT(COIN) OF JUSTICE-CLASS ACTIONS AND THE ROLE OF TECHNOLOGY IN MORRISON EXTRATERRITORIALITY ANALYSIS EDMUND H.S. BROSE* In the wild west of crypto, courts are slowly coming to realize that crypto assets present novel questions of law that challenge core assumptions of United States securities law. This online feature argues that a more comprehensive understanding of blockchain technology counsels courts to apply the antifraud provisions of the federal securities laws extraterritorially. Such a move will economize judicial capacity, deter fraud, and protect U.S. investors. Instead of relying on a nodular analysis, courts should look to the policy rationales of the Court's Morrison decision, as well as the Second Circuit's Absolute Activist opinion, to lead out of the jurisdictional morass of locating crypto transactions. In addition to relying on enumerated factual allegations laid out in Absolute Activist, courts should find that transactions occur where the parties are physically located rather than where the physical structure that underlies the crypto network is located. Further, they should utilize a plus factor of whether the company has marketed the product into a jurisdiction. As a result, courts can dispense with legal fiction and preserve the aims of the Morrison ruling. As private class actions only continue to increase in number, the time to develop a consistent and encompassing rationale is now. * Copyright © 2024 by Edmund Brose. J.D., 2023, New York University School of Law; B.A., 2017, Columbia University. I am once again deeply grateful to Judge Jed. S. Rakoff for inspiring an interest in securities litigation and class actions, as well as his thoughtful comments on the piece. Thank you also to Professor David Reiss for his thoughts on an early draft. Thank you also to the phenomenal Online Editors of the New York University Law Review, especially Colin Heath and Soomin Shin for her careful and incisive edits. I am always grateful for my loving family, especially my parents, who endured endless but important conversations around this complicated topic. 1

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