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To commemorate the 12 months since our launch, the FinTech Foundry team has
been involved in the following areas of FinTech, which we continue to monitor:
PRESSURE TO INTENSIFY FOR REGULATORS TO ADDRESS CRYPTO CUSTODY
The SEC will need to determine the circumstances under which crypto
should be treated as a security and how it should regulate the custody
of a digital assets.
Jay Baris, partner in Shearman & Sterling's Investment Funds practice,
noted in the Financial Times, "to solve this puzzle, the regulator has to
reconcile decades-old laws with new and inherently risky technology.
Too much regulation may stifle innovation but too little will put Main
Street investors at risk. Doing nothing is not an option."
INVESTOR DEMAND TO INCREASE TOKENIZATION OF ILLIQUID ASSETS
Interest in using blockchain and tokenization to fractionalize more
illiquid assets, such as real estate or art, to enhance the efficiency and
transparency of trading, and to give more people access to these asset
classes, shows no signs of slowing down.
On a podcast with Rebank, Donna Parisi, Global Head of Financial
Services and FinTech at Shearman & Sterling, explained that the goal
is to promote trading in secondary markets of new asset classes but
from a systemic view, we will need to watch and see if that will lead to
bubbles in certain markets.
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