Regulating Digital Currencies: Towards an Analytical Framework

By Steven L. Schwarcz March 23, 2021 by renholding

In a new article, I examine the development and regulation of digital currencies, which are monetary currencies that are evidenced electronically. Large “wholesale” payments among businesses and financial institutions already occur electronically, and bitcoin has been with us for …

Toward a Better Coordinated Regulatory Response to Cryptoassets

By Carol Goforth March 10, 2021 by renholding

On Monday, January 8, 2021, Tesla announced in a filing with the Securities and Exchange Commission that it had purchased $1.5 billion worth of Bitcoin.[1] This purchase coincided with a dramatic increase in the price of the cryptoasset, which …

Debunking Fintech Inside and Outside the Blockchain

By Fatjon Kaja, Edoardo Martino and Alessio M. Pacces November 27, 2020 by renholding

The hype over technology-enabled disintermediation of financial services, commonly known as fintech, seems at a peak. Though fintech firms promise to increase competition in the financial industry, it is unclear how much the various forms of fintech, including those working …

The Dog that Didn’t Bark: Effects of Regulation on Cryptocurrency Trading

By Brian D. Feinstein and Kevin Werbach September 28, 2020 by renholding

Cryptocurrencies have the potential to operate as a new financial asset class; as a novel fund-raising tool for ventures; as a more efficient payment mechanism, especially across borders; and as the foundation for an innovative, new economy of distributed applications. …

Will FinTech Disruption in the ‘20s Be Roaring?

By Troy A. Paredes and Lee A. Schneider April 3, 2020 by renholding

In recent podcasts, we addressed three themes, among other topics: how artificial intelligence and machine learning (AI/ML) can change how decisions get made; how blockchain can transform how we transact and how we record and communicate things; and how technology …

What Law and Economics Has to Say About Property Rights in Cryptocurrencies

By Roee Sarel April 2, 2020 by renholding

Technological advancements of recent years have given birth to a strange and interesting creature: cryptocurrencies like Bitcoin, Ether, and Facebook’s upcoming Libra. Many of the advantages offered by these tokens stem from their underlying technology – a decentralized ledger, which …

SEC Commissioner Dissents from Order Blocking Proposed Bitcoin-Related Rule

By Hester M. Peirce February 27, 2020 by renholding

Today the Commission once again disapproved a proposed rule change that would give American investors access to bitcoin through a product listed and traded on a national securities exchange subject to the Commission’s regulatory framework.[1] This order is the

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Stablecoins in Cryptoeconomics: From Initial Coin Offerings to Central Bank Digital Currencies

By Marco Dell’Erba November 15, 2019 by renholding

In a recent article, I highlight the links among initial coin offerings (ICOs), cryptocurrencies, stablecoins, and central bank digital currencies (CBDCs). Although these entities exist in different contexts (securities law and capital formation, payment systems, monetary policy), they are intertwined …

Facebook’s Libra Heightens Debate Over the Regulation of Cryptocurrencies

By Hadar Y. Jabotinsky August 16, 2019 by renholding

Cryptocurrencies like Ether, DAO, Bitcoin and Facebook’s Libra are electronically generated and stored currencies by which users can trade real or virtual objects with one another, bypassing traditional central clearinghouses. Given that these cryptocurrencies are starting to replace some national …

Riding the Mania of Blockchain: Public Firms’ Speculative 8-K Disclosures

By Stephanie F. Cheng, Gus De Franco, Haibo Jiang and Pengkai Lin August 7, 2019 by renholding

The price of Bitcoin, a cryptocurrency based on blockchain technology, increased dramatically from less than a penny when it was launched in 2009 to $900 in January 2017 and peaked at over $19,500 in December 2017. This rise coincided with …

SEC Commissioner Discusses Cross-Border Cooperation in Digital-Asset Regulation

By Hester M. Peirce August 6, 2019 by renholding

Thank you, Robby [Greene], for that kind intro. I am delighted to see that Robby, once my research assistant, has clearly gone on to bigger and better things. I also am delighted to be here in Singapore, by some accounts

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Libra: The Regulatory Challenges Facebook Ignored

By Georges Ugeux July 11, 2019 by renholding

The announcement on June 18 by Facebook of what it calls “a simple global currency and financial infrastructure that empowers billions of people” was sure to receive immediate attention. Facebook founder and CEO Mark Zuckerberg is now on a global …

Blockchain Developers and Fiduciary Duty: An Ill-Fitting Framework

By Raina S. Haque, Rodrigo Seira Silva-Herzog, Brent A. Plummer and Nelson M. Rosario June 21, 2019 by renholding

By enabling new modes of human interaction, technological advancements catalyze the evolution of regulatory frameworks, tools, and approaches. The rate at which computer technology evolves outpaces that of legislation and rule-making. Our economy is increasingly structured not only by traditional …

SEC Commissioner Peirce Talks Digital Assets: How We “Howey”

By Hester M. Peirce May 17, 2019 by renholding

One year ago, I gave a speech—appropriately in Southern California—called “Beaches and Bitcoin.”[1] At that time—not so long ago in analog time but eons ago in digital time—the burning question was how to decide when issuing tokens constituted an

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Debevoise Discusses Possible EU Approach to ICOs and Crypto-Assets

By Klaudius Heda, Clarisse Hannotin, Dr. Oliver Krauß and Dr. Friedrich Popp January 30, 2019 by abirvarma

In the first week of 2019, both the European Securities and Markets Authority (“ESMA”) and the European Banking Authority (“EBA”) issued reports advising EU legislators on the regulation of “crypto-assets” and initial coin offerings (“ICOs”). The European Supervisory Authorities (“ESAs”), …

Cryptocurrency Pump-and-Dump Schemes

By Tao Li, Baolian Wang and Donghwa Shin January 7, 2019 by renholding

Initial coin offerings (ICOs) have recently emerged as a popular method of financing blockchain-related startups. In an ICO, a startup creates and distributes its digital tokens, typically in exchange for Bitcoin, Ethereum, or fiat currencies such as U.S. dollars to …

Bitcoin Futures: From Self-Certification to Systemic Risk

By Lee Reiners December 18, 2018 by renholding

December 2017 marked a milestone in the short history of virtual currency. On Friday, December 1, 2017, the Chicago Mercantile Exchange Inc. (CME) and the CBOE Futures Exchange (CFE) self-certified new contracts for cash-settled bitcoin futures products. The self-certification process …

The Role of Disclosure in the Unregulated Crypto Market

By Thomas Bourveau, Atif Ellahie, Emmanuel T. De George and Daniele Macciocchi July 10, 2018 by renholding

Our new research paper studies the issuers of unregulated crypto-tokens such as EOS and Tether. We examine two dimensions: the success of the Initial Coin Offering (ICO) process, and the capital market patterns following the listing of the tokens on …

Bitcoin’s Price Chaos Demonstrates the Importance of Sophisticated Financial Products

By Peter Charles Bassine and Harrison Fregeau June 28, 2018 by renholding

Between January 1 and December 17, 2017, the value of a single Bitcoin skyrocketed from under $1,000 to nearly $20,000. To match Bitcoin’s 1183 percent return during this period, an investor would have needed the equivalent of 38 years’ average …

How to Regulate Bitcoin Futures

By Margaret Ryznar April 26, 2018 by renholding

Bitcoin is a currency, technology, and, most recently, futures product. Several clearinghouses have allowed bitcoin futures trading. For example, CBOE launched trading in bitcoin futures on December 10, 2017, while CME Group did so a week later.[1] NASDAQ and …

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