Finance and Financial Management Commons^™

From Tether To Terra: The Current Stablecoin Ecosystem And The Failure Of Regulators, Mary E. Burke

Fordham Journal of Corporate & Financial Law

The Tether controversy and Terra crash have placed stablecoins in the regulatory spotlight. Stablecoins are often portrayed as posing systemic risks to financial markets, with some pundits labelling them “the villain of the finance world.” Global regulatory bodies, namely the International Monetary Fund (IMF) and the Bank of International Settlement (BIS), and political leaders, including the Biden Administration, have all called for stablecoin regulation. These officials allege that stablecoins’ structure, combined with their exponential growth, pose a unique risk to global markets. Before the May 2022 Terra crash, government reports superficially treated stablecoins by exclusively focusing on asset-backed coins. Post …

A False Sense Of Security: How Congress And The Sec Are Dropping The Ball On Cryptocurrency, Tessa E. Shurr

Dickinson Law Review (2017-Present)

Today, companies use blockchain technology and digital assets for a variety of purposes. This Comment analyzes the digital token. If the Securities and Exchange Commission (SEC) views a digital token as a security, then the issuer of the digital token must comply with the registration and extensive disclosure requirements of federal securities laws.

To determine whether a digital asset is a security, the SEC relies on the test that the Supreme Court established in SEC v. W.J. Howey Co. Rather than enforcing a statute or agency rule, the SEC enforces securities laws by applying the Howey test on a fact-intensive …

The Substantial Growth Of Shadow Banking, Financial Technology And Digital Currency And Their Respective Roles In Shaping The Next Financial Crisis, Vardhan S. Chulani Mr.

Undergraduate Economic Review

Based on Goldman Sachs’ model and the state of current affairs, an underlying possibility of a financial crisis occurring in the foreseeable future does exist. This could be due to ongoing trade war and negotiations with different countries, the new policies introduced by political parties and their respective impacts, high amounts of corporate and student debts along with auto loans in the economy, thus indicating signs of excessive leverage and resulting in depressing consumer confidence. International issues such as Brexit, the existing currency and debt crisis with Turkey, and China’s debt bubble could also contribute to the global growth slowdowns. …