Calibrating Resolution Regimes for Traditional Financial Institutions and Crypto

2 Pages Posted: 30 Sep 2022 Last revised: 15 Nov 2022

See all articles by Joseph Jasperse

Joseph Jasperse

University of Pennsylvania

Sarah Hammer

The Wharton School and The University of Pennsylvania Law School

Date Written: July 21, 2022

Abstract

Many key policy issues loom regarding the resolution of a failed crypto company: identification of the primary regulator, the applicable customer protection regime, what is the applicable resolution regime, who will be the receiver in insolvency, whether funding is available, the applicability of an automatic stay to short-term liabilities, and the order of claims. This last issue, the order of claims, is especially critical if a decentralized finance protocol pre-specifies the treatment of assets in a resolution process in a way that differs from the traditional order of claims. A related issue is whether voidable transfer provisions will then apply.

Keywords: crypto, cbdc, blockchain, web3, financial regulation, digital assets

Suggested Citation

Jasperse, Joseph and Hammer, Sarah, Calibrating Resolution Regimes for Traditional Financial Institutions and Crypto (July 21, 2022). Available at SSRN: https://ssrn.com/abstract=4228350 or http://dx.doi.org/10.2139/ssrn.4228350

Joseph Jasperse (Contact Author)

University of Pennsylvania ( email )

Sarah Hammer

The Wharton School and The University of Pennsylvania Law School ( email )

Philadelphia, PA 19104
United States

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