Polsinelli BitBlog | FinTech

The convergence of the financial services industry and transformative technologies, commonly known as FinTech, is reshaping the industry. Within this intersection of innovation, Polsinelli’s BitBlog serves a resource for individuals and firms in the developing FinTech industry. Our FinTech and Regulation attorneys provide readers with a broad range of content and a unique perspective on the global FinTech landscape. 

For more information visit Polsinelli's FinTech and Regulation practice page.

 

Court Denies Defendants’ Motion to Dismiss in Commodity Fraud Case Involving the Virtual Currency My Big Coin

Court Denies Defendants’ Motion to Dismiss in Commodity Fraud Case Involving the Virtual Currency My Big Coin

By: Richard B. Levin and Paul J. Roshka

On September 26, 2018, Senior Judge Rya W. Zobel of the U.S. District Court for the District of Massachusetts, entered an order holding that the Commodity Futures Trading Commission (CFTC) has the power to initiate enforcement actions involving virtual currencies and denying the defendants’ motion to dismiss the CFTC’s amended complaint. 

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Crypto-assets Do Not Pose a Material Risk to Global Financial Stability

Crypto-assets Do Not Pose a Material Risk to Global Financial Stability

By: Richard B. Levin

The Financial Stability Board (FSB) noted in a recently published report:

Based on the available information, crypto-assets do not pose a material risk to global financial stability at this time. However, vigilant monitoring is needed in light of the speed of market developments ...

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SEC Charges Bitcoin-Funded Securities Dealer and CEO

SEC Charges Bitcoin-Funded Securities Dealer and CEO

By: Richard B. Levin

September 2018

The Securities and Exchange Commission (“SEC”) recently filed charges against an international securities dealer and its Austria-based CEO for allegedly violating the federal securities laws in connection with security-based swaps funded with bitcoins. 

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Understanding Blockchain and Its Role in Global Supply Networks

Understanding Blockchain and Its Role in Global Supply Networks

By: Joyce Mazero and William W. Sentell

June 2018

By now, bitcoin has become a household name. The idea of a digital, unregulated “cryptocurrency” elicits strong responses. Some have heralded bitcoin as revolutionary. Others, like JP Morgan Chase CEO Jamie Dimon, have denounced it as a “fraud.”

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Cryptocurrency Class Action Lawsuits: A New Frontier

Cryptocurrency Class Action Lawsuits: A New Frontier

By: Michael S. Foster, Mark A. Olthoff and Richard B. Levin

Cryptocurrencies, like Bitcoin and Ethereum, had a breakout year in 2017. The price of Bitcoin rose from approximately $1,000 per Bitcoin on January 1, 2017, to $13,000 per Bitcoin on December 31, 2017, with a high of approximately $20,000 per Bitcoin. Ethereum increased from approximately $10 per Ether to $755 during the same time period.

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How FinTech Could Reboot Libor

How FinTech Could Reboot Libor

By Stephen A. Rutenberg and Fiammetta S. Piazza

April 2018

Part One of this two part E-alert looked at the challenges facing London Inter-Bank Offered Rate (LIBOR) LIBOR and how the syndicated loan market is dealing with the potential non-availability of these rates. Part two considers if blockchain technology and a ‘LIBOR currency’ could boost submission incentives and make process more secure.

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How the Syndicated Loan Market is Dealing with the Potential Replacement of LIBOR

How the Syndicated Loan Market is Dealing with the Potential Replacement of LIBOR

By: Stephen A. Rutenberg and Fiammetta S. Piazza

April 2018

The May 2008 disclosure of the manipulation of London Inter-Bank Offered Rate (LIBOR), in what has become known as the ‘LIBOR Scandal’; resulted in regulators for the United States, the United Kingdom and the European Union fining banks more than $9 billion. LIBOR underpins over $350 trillion worth of transactions each year, of which about $200 trillion consists of derivatives, mortgages and, of particular of concern here, syndicated loans.

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Blockchain: Coming to a CMBS Near You

Blockchain: Coming to a CMBS Near You

By: Jason A. Nagi

Although at first glance the underlying technology behind Bitcoin and mortgage backed securities have little in common, blockchain technology has the potential to revolutionize securitizations because it permits value and information to be securely stored simultaneously, in multiple locations, and transferred without the use of an intermediary. 

By diminishing the need for an intermediary, reducing the risk of data being compromised and making the process more efficient, Blockchain technology holds tremendous potential for securitizations. 

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