The digital assets industry has grown exponentially since Bitcoin was first introduced in 2009. (Wulf Kaal, Digital Asset Market Evolution). Though the digital assets market value is infamous for its volatility, the worldwide market capitalization of digital assets reached over $3 trillion at its height in November 2021. (Joanna Ossinger, TIME). As investors and the public more frequently use cryptocurrencies, non-fungible tokens (“NFTs”), and decentralized finance, the risks associated with digital assets increase…
Read MoreA novel type of entity has emerged in the world of global finance. It is called a Decentralized Autonomous Organization (“DAO”) and it was created to offer several benefits over traditional corporate structures. DAO’s are digital organizations built on blockchain technology and managed by their members in a democratic voting environment, DAO’s reduce transactional costs by removing the need for third parties, and DAO’s spur innovation in small business by making access to banking and capital more equitable…
Read MoreSenators Kirsten Gillibrand (D-NY) and Cynthia Lummis (R-WY) introduced legislation on June 7, 2022 that would implement and divide oversight of the cryptocurrency market between the Securities and Exchange Commission (“SEC”) and the Commodity Futures Trading Commission (“CFTC”). (David A. Lopez-Kurtz, National Law Review; Soyoung Ho, Thomson Reuters). Proposed legislation of this kind may feel anathema to the underlying premise of blockchain technology and its freewheeling pioneers…
Read MoreIs there any clear sight for the future of special purpose acquisition companies (“SPACs”), which proliferated in the bull market of the pandemic? Amidst a bear market and increasing scrutiny from the Securities and Exchange Commission (“SEC”), SPACs have crashed as fast as they rose. (Lipschultz, Bloomberg Law). The features, such as their speed and lack of disclosures, that made SPACs so popular, are now causing their failure…
Read MoreAutomated digital investment advisory programs, often referred to as “robo-advisers”, have grown in popularity over the last decade since their initial introduction in 2008. (SEC; Investopedia). As a digital financial adviser, a robo-adviser manages investments with minimal human intervention. (Milan Ganatra, Aashika Jain, Forbes). Robo-advisers provide automated investment portfolios based on the investor’s imputed preferences, risks, and goals by using advanced algorithms that analyze investor information. (Id.; Charles Schwab). While this technology is a considerable advancement and is accurate most of the time, it is not without its drawbacks and risks…
Read MoreOn March 21, 2022, the U.S. Securities and Exchange Commission (“SEC”), proposed a new climate reporting rule to provide investors with more climate-related data to make informed investments. (SEC). The announcement of this proposal has been met with serious reservations by industry lobbyists and Republican politicians who view the regulation as outside of the SEC’s authority. Id. Notably, General Motors (“GM”) strongly objected to the proposal and sent their CEO to meet with members of the SEC. (SEC). While many organizations have voiced their criticisms of the proposal, whether the SEC will take heed of these objections has yet to be seen…
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