Tag Archives: FinTech

Cryptocurrency Disruption and Investor Reaction to Earnings Announcements 

By | July 29, 2022

Does the increasing attention to cryptocurrencies divert investor attention away from the traditional equity market? In our recent paper, we study whether attention to cryptocurrency impacts information processing and price efficiency in the equity market.   The cryptocurrency market has grown from $17 billion at the beginning of 2017 to $2.2 trillion at the end of… Read More »

How To Resolve A Dispute Involving A DAO

By | July 21, 2022

Since early May 2022, a Decentralized Autonomous Organization (DAO) known as “bZx DAO” has been facing a lawsuit in California. The plaintiffs hold the defendants liable for their losses following a hack of the protocol that was managed by the DAO. This case is reminiscent of the first DAO known as “The DAO”, which was… Read More »

CFTC Complaint Against Gemini Reveals Weaknesses in the Agency’s Approach to Virtual Currency

By | July 20, 2022

Last month marked the latest chapter in the long, strange saga of Bitcoin futures. On June 2nd, the Commodity Futures Trading Commission (“CFTC” or “Commission”) filed a civil complaint against the cryptocurrency exchange Gemini “for making false or misleading statements of material facts or omitting to state material facts to the CFTC in connection with… Read More »

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The End of the Crypto-Diversification Myth 

By | July 19, 2022

In the first half of 2022, Bitcoin lost over half its value, and the correlation with the stock market jumped to over 60%. These patterns are both remarkable and hard to explain. Why do monetary policy, the economy, or wars matter for the value of cryptocurrencies? Why do cryptocurrencies behave like tech stocks?  From an… Read More »

Decentralized Finance, Crypto Funds, and Value Creation in Tokenized Firms

By | May 31, 2022

Decentralized fundraising through Initial Coin Offerings (ICOs) for early-stage ventures is one important new business model that has only become viable through blockchain technology and smart contracts. Utility tokens, voucher-like assets providing access to a service or product that a venture promises to provide in the future, are generally considered as perfectly disintermediated peer-to-peer transactions,… Read More »

A Critical Analysis of the SEC’s Reaction to Crypto Lending 

By | May 20, 2022

For the past several years, investors around the world who are interested in owning and holding certain cryptoassets for the long term have had the opportunity to deposit their assets with various companies and protocols and earn interest. One such company is CoinLoan, based in Europe and regulated under applicable EU financial law. It offers… Read More »

The End of the War or the Commencement of Battle?  

By | May 19, 2022

Cryptocurrency Regulation in China  In September 2021, China’s central bank, its highest court and procuracy, as well as seven other national government departments and agencies jointly enacted a legally binding Notice on Further Preventing and Disposing of the Risks of Speculative Trading in Virtual Currencies (“Notice”), marking the culmination of China’s yearslong war against cryptocurrencies.… Read More »

Third-Party Litigation Finance and Public Capital Markets: The Case of the Muddy Waters Short Attack on Burford Capital

By | May 13, 2022

Imagine a company that invests in a portfolio of long-term financial assets. This company’s asset portfolio is, relative to the asset management industry, highly concentrated—a circumstance which naturally heightens the appetite of the company’s own investors to know more details of the assets in the portfolio. The company operates in an adolescent industry, and neither… Read More »

Non-Intermediate Clearing of Crypto Derivatives on Margin is a Bad Idea

By | May 12, 2022

The following is an edited comment letter that was submitted to the Commodity Futures Trading Commission (CFTC, or Commission) on May 11th in regards to the Commission’s request for comment on FTX’s request to amend their derivatives clearing organization order to permit it to clear non-intermediated, margined products. All submitted comments can be viewed here. We are law professors… Read More »

The Media Goes Where They’re Needed: The Relation between Firms’ Investor Base and Media Coverage

By | April 27, 2022

The financial media provides information to investors by monitoring firms for malfeasance, such as fraud and excessive CEO pay (Miller, 2006; Core, Guay, and Larcker, 2008). The media also helps investors monitor more mundane corporate activities, such as periodic earnings announcements. However, it is unclear why certain firms get extensive media coverage, along with the resulting benefits,… Read More »