Thread by @CaitlinLong_

1/ JUST READ opinion in latest lawsuit against #crypto exchanges/custodians over whether customers are owed forks/airdrops. As discussed on podcasts (@APompliano, @PeterMcCormack, @stephanlivera, @PrestonPysh+others), these contracts tend to be 1-sided...
law.justia.com/cases/californ…

2/ ...& judges generally will uphold the contract to which parties agreed, so breach of contract & conversion claims not likely to win (& they aren't). This is why these 1-sided contracts are a prob for institutional investors who owe a #fiduciary obligation to their customers...

3/ ...a fiduciary asset manager who agrees to a vague, 1-sided contract will get sued by its clients for breach of fiduciary duty if something goes wrong (& if it's an #ERISA fund, that fiduciary has PERSONAL liability & will be sued personally, not just sued professionally)...

4/ ...this is EXACTLY why #Wyoming enacted clear & FAIR legal standards--fiduciaries need to know EXACTLY what they're getting, that rights will be protected & are enforceable in court. This hasn't been the case in CA, GA lawsuits to date. Wyoming's rules: docs.google.com/viewer?a=v&pid…

5/ ..2 EXAMPLES of why #Wyoming law is just better. Here's how Wyoming requires customer agreements to define the digital asset--must reference the source code version & all ambiguity is construed in favor of customer. So, your custodian can't just redefine #bitcoin as B-cash...

6/ ...if they wanted to (many customer agreements in use in industry today arguably wld permit this bc so vague). #Wyoming fork/airdrop rules take a property rights approach that's FAIR to customers w/o imposing undue burden on exchanges/custodians (p.19-6). @nic__carter has...

7/ ...analyzed #Wyoming laws, including its #proofofreserves requirements here:

https://twitter.com/nic__carter/status/1117438831396048897?s=20

8/ ...Yep, #Wyoming's rules actually reference "Merkle tree" 💯. Seriously, where else in the world would you see such a reference?!?!? As I've said before, the #crypto companies that redomicile into Wyoming speak volumes abt their commitment to serving their customers instead...

9/ ...of treating them like counterparties. (Only #Wyoming offers custody as #bailment, which gives MUCH better customer protection esp in event of bankruptcy). #Wyoming law separates wheat from chaff among #crypto exchanges/custodians in the U.S. Time will prove this out.🤠