Decentralized Finance, Crypto Funds, and Value Creation in Tokenized Firms

Decentralized fundraising through Initial Coin Offerings (ICOs) for early-stage ventures is one important new business model that has only become viable through blockchain technology and smart contracts. Utility tokens, voucher-like assets providing access to a service or product that a venture promises to provide in the future, are generally considered as perfectly disintermediated peer-to-peer transactions, […]

A Critical Analysis of the SEC’s Reaction to Crypto Lending 

For the past several years, investors around the world who are interested in owning and holding certain cryptoassets for the long term have had the opportunity to deposit their assets with various companies and protocols and earn interest. One such company is CoinLoan, based in Europe and regulated under applicable EU financial law. It offers […]

The End of the War or the Commencement of Battle?  

Cryptocurrency Regulation in China  In September 2021, China’s central bank, its highest court and procuracy, as well as seven other national government departments and agencies jointly enacted a legally binding Notice on Further Preventing and Disposing of the Risks of Speculative Trading in Virtual Currencies (“Notice”), marking the culmination of China’s yearslong war against cryptocurrencies. […]

Non-Intermediate Clearing of Crypto Derivatives on Margin is a Bad Idea

The following is an edited comment letter that was submitted to the Commodity Futures Trading Commission (CFTC, or Commission) on May 11th in regards to the Commission’s request for comment on FTX’s request to amend their derivatives clearing organization order to permit it to clear non-intermediated, margined products. All submitted comments can be viewed here. We are law professors […]

The Media Goes Where They’re Needed: The Relation between Firms’ Investor Base and Media Coverage

The financial media provides information to investors by monitoring firms for malfeasance, such as fraud and excessive CEO pay (Miller, 2006; Core, Guay, and Larcker, 2008). The media also helps investors monitor more mundane corporate activities, such as periodic earnings announcements. However, it is unclear why certain firms get extensive media coverage, along with the resulting benefits, […]

Of standards and technology: ISDA and technological change in the OTC derivatives market

There is no lack of interest in new technologies such as distributed ledger technology (DLT) or smart contract technology (SCT). For enthusiasts, DLT and SCT are full of promise. Thanks to technology, the future is meant to be frictionless and more decentralized. However, interest in the “plumbing” underneath, which is required to implement the vision […]

FinTech Regulation in the United States: Past, Present, and Future 

For the last year, participants in the growing financial technology (FinTech) sector have been anticipating new regulation for digital assets. On March 9, 2022, President Biden signed an executive order to begin the process of developing a new supervisory regime that will help the United States be a leader in the space and resolve the challenges associated […]

Assessing Cyber Insurers’ War Exclusions & Coverage Carvebacks

Given the recent surge of ransomware attacks and escalating conflict with Russia, assessing a cyber insurance policy’s war/terrorism exclusion has never been more important. The cyber war exclusion, used by insurers to insulate against catastrophic risk, has been a considerable topic of discussion due to its overly broad language and potential for misapplication. Nearly all […]

Fintech and Racial Barriers in Small Business Lending

Racial disparities in the traditional small business credit market are a well-documented phenomenon in the U.S. With the recent development of more automated and anonymized lending technologies comes a natural question: do fintech lenders serve minority-owned businesses who are in the blind spots of traditional lenders? In our recent project, we investigate whether minority borrowers are more likely to use […]

Why the GDPR May Fail to Protect Individuals from Privacy Risks Produced by Artificial Intelligence Applications And A New Transparency-Based Approach to AI Governance May Help

In 2021, Frances Haugen, a former Facebook employee, disclosed how the company’s machine-learning-powered services have been exploiting the personal data of millions of users. According to internal documents collected by Haugen during her time at Facebook, the tech giant has intentionally collected consumers’ personal data and misused its artificial intelligence (AI) systems to boost corporate profits, and it has done so […]