Category Archives: Fintech

What Congress Should Ask About Facebook’s New Cryptocurrency

By | July 2, 2019

On June 18th, Facebook released a white paper and additional documentation that describe a new cryptocurrency, called Libra, which will be governed by the twenty-eight member Libra Association (the “Association”). Shortly thereafter, the Senate Banking Committee and the House Financial Services Committee announced they would hold hearings to look into Libra and Facebook’s involvement; these… Read More »

The SEC Should Continue to Say No to Bitcoin Exchange-Traded Products

By | June 18, 2019

The following is an edited comment letter that was submitted to the Securities and Exchange Commission (the “Commission”) on June 14th in response to the Commission’s May 20, 2019 order (Release No.34-85896) to institute proceedings under Section 19(b)(2)(B) of the Securities Exchange Act of 1933 (“Act”) to determine whether to approve or disapprove of Cboe… Read More »

The Expanding Regulatory Perimeter – Crypto-Asset Trading

By | May 30, 2019

Courtesy of Barbara C. Matthews (JD/LLM ’91) “Hi!  I’m from the government.  I’m here to help.” The regulatory perimeter regarding crypto-assets continues to expand.  The latest move comes from the International Organization of Securities Commissions (IOSCO) which released for comment on 28 May, 2019 suggested regulatory oversight standards[1] to govern crypto-asset trading platforms (the “IOSCO… Read More »

North Carolina’s Proposed Regulatory Sandbox Needs Work

By | May 28, 2019

Last month, a bill was introduced in the North Carolina General Assembly that would make North Carolina the fourth state – after Arizona, Wyoming and Utah – to offer a regulatory sandbox for innovative financial services firms. Broadly defined, a regulatory sandbox is a ‘safe space’ in which businesses can test innovative products or services… Read More »

Entrepreneurial Finance and Moral Hazard: Evidence from Token Offerings

By | April 30, 2019

Courtesy of Paul P. Momtaz Token Offerings or Initial Coin Offerings (ICOs) are a rapidly growing market, with more than 4,500 transactions in 2018 alone. However, there is also substantial fraudulent activity spurred by the absence of regulation. My new paper, Entrepreneurial Finance and Moral Hazard: Evidence from Token Offerings, explores a very subtle, hard-to-track… Read More »

High-Frequency Trading Comes to Cryptocurrency

By | April 24, 2019

Courtesy of Marissa Cantu and Lee Reiners Amidst last December’s stock market volatility, Treasury Secretary Steve Mnuchin argued “high-frequency traders combined with the Volcker Rule” were to blame.  Secretary Mnuchin then announced he intended to ask the Financial Stability Oversight Council to review how market structure, in conjunction with high-frequency trading, contributes to stock market… Read More »

The Pros and Cons of Big Tech Banking

By | April 10, 2019

Courtesy of Miguel de la Mano and Jorge Padilla The entry of Big Tech players, such as Google, Facebook and Amazon, into online banking will fundamentally alter retail banking’s competitive landscape. Big Tech platforms have large, installed customer bases, established reputations, powerful brands, considerable earnings and unfettered access to capital markets. They can leverage superior… Read More »

Global FinTech Policy – A Shifting Landscape

By | February 27, 2019

Courtesy of Barbara C. Matthews This February could rightly be called “FinTech Month” in Basel, Switzerland, given the number of documents put out by the Financial Stability Board (FSB) that point to a shift in priorities for the international standard setting body. While little noticed by the financial press, this post will analyze the FSB… Read More »

Digitalisation of Payment Services in Europe

By | February 5, 2019

Courtesy of Fernando Zunzunegui Technology has made financial services more accessible, faster, and cheaper. Payment services, in particular, are a testing ground for fintech innovation.  Cryptocurrencies, payment initiation, and information management services associated with bank accounts have recently emerged as significant disruptions in the payments industry. As data has become essential to economic success, the… Read More »

ICO Regulation not Slowed by Brexit or US Shutdown Chaos

By | January 28, 2019

Courtesy of Barbara C. Matthews It seems somehow ironic and fitting that the economic sector most hostile to centralized governments – cryptocurrency and initial coin offerings (ICOs)  – faces renewed regulatory activity despite the UK Brexit and US shutdown chaos.  On January 23, the Financial Conduct Authority (FCA) in the United Kingdom issued a new… Read More »