Shearman And Sterling

Shearman & Sterling is firmly committed to helping clients achieve their business objectives. With a focus on our clients’ changing needs and goals, we deliver a wide range of materials and services to keep them up to date and informed.

Perspective

Global Banking Regulators Eye Capital Requirements for Banks Cryptoasset Exposures

June 17, 2021

On June 10, 2021, the Basel Committee on Banking Supervision (BCBS) issued a public consultation on a proposal that would apply regulatory capital requirements for banks’ exposures to cryptoassets (the “Consultation”). While banks’ exposures to cryptoassets are currently limited, the BCBS is concerned about the “absolute size” and “rapid developments” of the cryptoasset market. In particular, the BCBS regards the growth of cryptoassets and related services as having the potential to raise financial stability concerns and increase risks faced by banks, including liquidity, credit, market, operational, and legal and reputation risks.

Perspective

DOE Launches Energy Earthshot to Spur Low Cost, Clean Hydrogen

June 16, 2021

On June 7, 2021, Secretary of Energy Jennifer M. Granholm launched the U.S. Department of Energy (DOE) Energy Earthshots initiative. This Earthshots program aims to accelerate breakthroughs in net-zero carbon technologies in the United States and around the world, while creating clean energy jobs and achieving the Biden-Harris Administration’s goal of a net-zero carbon emission economy by 2050.[1]

Perspective

Second Circuit Holds That 1-800 Contacts Lawfully Protected Its Trademark In Online Search Auctions

June 15, 2021

On June 11, 2021, the United States Court of Appeals for the Second Circuit issued a decision in a closely watched case regarding the intersection of IP and antitrust principles. See 1-800 Contacts, Inc. vs. Federal Trade Commission, 2021 WL 2385274, Case No. 18-3848 (2nd Cir. Jun. 11, 2021). In its decision, the Second Circuit vacated the U.S. Federal Trade Commission’s (FTC) decision finding that 1-800 Contacts’ (1-800) settlement agreements regulating the use of its trademarks in search advertising auctions violated the antitrust laws. The Second Circuit held that, while trademark settlements are not immune from antitrust scrutiny, the FTC improperly deemed the agreements “inherently suspect” and also wrongly concluded that they violated the antitrust “rule of reason.” In so doing, the Second Circuit touted the procompetitive benefits of trademark enforcement and made clear the FTC’s decision was “antithetical to the procompetitive goals of trademark policy.”

Perspective

Nebraska’s New Subsurface Carbon Storage Legislation and Comparisons to Texas

June 11, 2021

On May 24, 2021, the State of Nebraska signed into law LB650[1], providing precise guidance on the management of geological subsurface Carbon Dioxide (CO2) storage. While other states, including Texas, have issued legislation on this issue in the past, LB650 represents the latest attempt by a state to regulate subsurface CO2 on a comprehensive basis.

Perspective

Blockchain in Real Estate

June 07, 2021

Perspective

Supreme Court in CIC Services LLC v. IRS Allows Material Advisor to Seek Pre-Enforcement Injunctive Relief Against IRS

June 04, 2021

On May 17, 2021, in CIC Services LLC v. Internal Revenue Service, a unanimous U.S. Supreme Court held that the Anti-Injunction Act (AIA) does not bar an action challenging the validity of a notice issued by the IRS that imposed information reporting requirements and which sought to enforce the requirements through the imposition of tax penalties. The Court reversed a Sixth Circuit decision that had applied longstanding Supreme Court precedent barring, with only a few exceptions, suits seeking injunctive relief against the Treasury Department and IRS. The Court reasoned that the action could proceed because it should be viewed as seeking to enjoin an information reporting requirement and not the collection of the tax penalty that could be imposed for non-compliance.

Perspective

The New Tenant Data Privacy Act

June 03, 2021

Owners of New York City apartment buildings should take notice of the new Tenant Data Privacy Act (the TDPA). The TDPA will regulate the collection, use, safeguarding, and retention of tenant data by owners of “smart access” residential buildings. The new law was enacted on May 30, 2021, and will become effective at the end of June 2021. Owners of New York City residential buildings will have until January 1, 2023, to come into compliance.

Perspective

Biden Administration Releases Green Book Offering Further Detail on Corporate and International Tax Proposals

June 02, 2021

On May 28, 2021, the U.S. Department of Treasury (“Treasury”) released its explanation of the Biden Administration’s fiscal year 2022 revenue proposals (the “Green Book”). The Green Book provides further details on the proposals set forth in the “Made in America” tax plan (the “Tax Plan”) that the Biden administration unveiled on March 31, 2021. This publication summarizes the proposed changes to key corporate and international tax provisions of the Internal Revenue Code of 1986, as amended (the “Code”), that are contained in the Green Book.

Perspective

Securitization as an Integral Part of a Corporate Capital Structure

June 02, 2021

Partner Bjorn Bjerke (New York-Finance) authored a chapter titled “Securitization as an Integral Part of a Corporate Capital Structure” in this year’s International Comparative Legal Guide to Securitisation (ICLG).