Should the States or Federal Government Regulate Fintech?

From lending to payment processing, the core functions of banks are increasingly performed by financial technology (fintech) firms. But U.S. law has struggled to accommodate the rise of fintech. To catch up to the market, state and federal officials have undertaken a diverse array of regulatory initiatives. Numerous regulators have relied on the prevailing paradigm […]

Curbing Market Manipulation in the Cryptocurrency Spot Market: The Need for a Centralized Cryptocurrency Regulation in the US

In October 2020, the UK Financial Conduct Authority (‘FCA’) imposed a ban on the selling of cryptocurrency-related derivatives (‘crypto derivatives’) to retail investors. The FCA implemented this ban after concluding that cryptocurrency as a reference asset in any derivatives product is opaque, complex, and unreliable. In Europe, the European Securities and Markets Authority (‘ESMA’) has taken a […]

The E.U.’s Digital Operational Resilience Act: Cloud Services & Financial Companies

In September 2020, the European Commission released a proposed regulation on digital operational resilience for the financial sector (“DORA”), which aims to establish a detailed and comprehensive framework on digital operational resilience for financial entities in the European Union (“EU”). DORA includes provisions governing the management of risks associated with financial entities’ outsourcing to technology service providers […]

CBDC – How Dangerous is Programmability?

Among Central Bankers, the issuance of a Central Bank Digital Currency (CBDC) is a topic of great interest. The Bank for International Settlement (BIS) has recently published a report showing that many central banks are conducting research and experiments and a small number are already deploying pilot projects. Research projects have been set up by European Central Bank (ECB), […]

Why Australia Needs a Better Model for Its Enhanced Fintech Sandbox

Regulatory sandboxes are an important part of the ongoing global race to attract FinTech talent, as different economies keep launching new programs to support FinTech and attract innovators. Australia is no stranger to this race: between 2014 and 2020, the number of FinTech start-ups in the country increased more than seven-fold and exceeded 700. In […]

A Trip Down Crypto’s Memory Lane

Last month, I published an op-ed in the Wall Street Journal that argued for a ban on cryptocurrency in order to combat the ransomware plague that is devastating our economy and businesses across the country. My premise is simple. Cryptocurrency has been around for over a decade; that is more than enough time for us to take […]

The “Musk Effect”: How influential and well-known individuals can influence Bitcoin and other cryptocurrencies

On January 29, 2021, the price of one Bitcoin rose from $32,000 to $38,000 within a few hours. The catalyst for this jump appeared to be an update to Elon Musk’s Twitter bio. Musk used #bitcoin for his account description followed by a tweet that said: “In retrospect, it was inevitable.” At the time, the world was unaware that Tesla, Inc. had […]

Restoring Order in Crypto’s Wild West

Last week marked another milestone in the evolution of cryptocurrency. Visa announced they would let USD Coin, a stablecoin pegged to the U.S. dollar, settle on its payment network, and PayPal launched “Checkout with Crypto,” a service that allows customers to pay with cryptocurrency at checkout. These moves represent the latest brick to be removed […]

Finding a Regulatory Response to Crypto Sales that Actually Fits

Cryptoassets did not exist before 2009, the year that the Bitcoin blockchain was released and the first Bitcoins were mined. This new “asset” had no governmental backing and no tangible existence whatsoever, and was embodied only as a digitized code hosted on a computer network owned and controlled by private citizens. Yet, the original goal was to have this new technology […]

Beware of the Bitcoin Balance Sheet

Tesla made news earlier this month when the release of their 2020 annual report revealed the firm had purchased $1.5 billion in bitcoin and would begin accepting bitcoin as a form of payment for their “products in the near future.” Following this revelation, Tesla’s CEO Elon Musk tweeted:  “Having some Bitcoin, which is simply a […]