Efficient Cyber Risk: Security and Competition in Financial Markets

In recent years, hackers have imposed additional costs to financial infrastructure providers through data theft and service disruptions, leading to losses for both institutions and clients alike. Are institutions reacting appropriately to these threats? How should their clients respond? Most importantly, at what cost? Crime in the Digital World In March of 2017, Equifax—one of […]

How Much Good Could FinTech Do, If FinTech Could Do Good?

Courtesy of Bryane Michael Financial technology (or FinTech) represents the corporate social responsibility of the 2010s. The very name increasingly represents something wholesome: reshaping social impact and promoting FinTech4Good, and stepping up to tackle the challenges caused by the COVID-19 crisis. Yet, just like the corporate social responsibility (CSR) wave of the 1990s and the […]

Auditing Crypto-Financing

Courtesy of Vanessa Villanueva Collao and Verity Winship Distrust in traditional intermediaries after the financial crisis incentivized the crypto community to develop private coinage and to allow different applications (software platforms) to function as a vehicle for funding startups through the Initial Coin Offering (ICO) process. The self-executing nature of smart-contracts enabled decentralization and promised […]

The Virtual Commodity Association and the Uphill Battle for Cryptocurrency Self-Regulation

Courtesy of Katarina Weessies In March of 2018, Cameron and Tyler Winklevoss proposed the Virtual Commodity Association (VCA), a self-regulatory organization, or SRO, meant to make the cryptocurrency industry more “safe and secure.” An SRO is “a nongovernmental organization that is statutorily empowered to regulate its members by adopting and enforcing rules of conduct.” The […]

How Cryptocurrencies Should Be Regulated as Non-Sovereign Fiat Currencies

Courtesy of J.S. Nelson As Facebook’s Libra, despite hiccups, may have 2.4 billion users a month transacting for goods and services by later this year, the question of how cryptocurrencies should be regulated is taking on pressing importance. My forthcoming article, “Cryptocommunity Currencies,” argues—first, that cryptocurrencies should be regulated; second, that they should be regulated […]

Ripple Effects: How Ongoing Litigation Could Signal the Beginning of the End For the Payments Platform

Courtesy of Lindsay Martin Founded in 2012, Ripple sought to revolutionize global payments using blockchain technology and digital assets. Members of the Ripple network can quickly transfer funds to other members of the network in a secure, real-time settlement process. Ripple’s native currency is XRP, and members of the Ripple network can transfer XRP to […]

The Rise of Rent-a-Charter: Examining New Risks Behind Bank-Fintech Partnerships

Courtesy of Joseph Caputo and Lee Reiners The emergence of fintech lending – also called marketplace lending or peer-to-peer lending – and its interplay with the United States’ fragmented financial regulatory system, has given rise to a niche market of mid-size banks that cater to nonbank fintech lenders. While these banks may provide their fintech […]

Ethical Considerations of Blockchain: Do We Need a Blockchain Code of Conduct?

Courtesy of Michele Benedetto Neitz  Blockchain technology is not as decentralized as we think. From the outset, the original innovators of blockchain viewed the technology as an opportunity to solve the “problem” of government oversight over economic activities. A truly decentralized, immutable ledger, would remove the potential for human shortcomings and state control, impacting everything […]

Smart Contracts for Securities Transactions on the DLT Network: Legal Obstacles and Regulatory Challenges

Fintech developers and financial institutions[1] have presented the benefits of using smart contracts to facilitate securities/interests transfers (trading) on distributed ledger technology (DLT) platforms. The benefits are DLT’s technological ability to bring about decentralization and disintermediation which are the main characteristics of peer-to-peer (P2P) trading platforms and reduction of transaction costs for users and financial […]

Blockchain Disruption and Decentralized Finance: The Rise of Decentralized Business Models

Courtesy of Yan Chen and Cristiano Bellavitis Over the last few years, blockchain and its applications – such as Bitcoin – have gone through a cycle of high promise and setback. In September 2017, some commentators argued that blockchain was the most important invention since the internet and electricity. Then, a few months later, governments […]