Legal Issues in Cryptocurrencies and other Cryptoassets

Instructor: Dr. Giovanna Massarotto, Fellow, University of Pennsylvania

Technological change is upending the financial industry. The course focuses on how the regulation and legal framework are adapting to this change. Emerging technologies, such as blockchain and AI, will be also explored as a toll to enforce regulation (e.g. the U.K. Financial Conduct Authority (FCA) participated in a blockchain pilot in the context of mortgages).

The course will start with a discussion on what is money and an overview of the main policy/regulatory issues, such as the use of cryptographic protocols (e.g. Bitcoin and Zero Knowledge proof protocols) to preserve privacy in payments and a decentralized (peer-to-peer) money system.  Then, it investigates the major crimes (e.g. money laundering and scams) in the context of cryptocurrencies and cryptoassets more broadly, explaining the main reasons why in certain countries cryptocurrencies like bitcoins are banned. The course proceeds with the investigation of the financial regulatory framework for cryptoassets focusing on the U.S. and European jurisdictions, as models of reference for other countries. Emphasis will be put on the main differences between digital and non-digital assets (security) regulation through the analysis of blockchain technologies underlying digital assets and case studies. The main legal issues related to AI (bias, data protection and artificial responsibility) will be also explored.

The discussion of regulatory policy for cryptoassets will proceed with the analysis of antitrust law and what are the main antitrust issues involved. Case studies, including Visa’s proposed acquisition of the FinTech company Plaid, will be analyzed to provide participants with some concrete examples of how antitrust affects FinTech. The issue of algorithmic collusion will be also explored. The course ends with the investigation and discussion of the issue “Trust the Government v. Trust the Technology,” and the need of an international regulatory framework for cryptoassets. The present and future challenges for cryptoassets regulation and law will be debated and discussed.

• This course is intended for people who participate in the process of creating or interpreting regulation and legislation related to emerging technologies as applied in finance. The course is especially useful for those who have no or little knowledge of blockchain and AI technologies applied in finance and the main legal issues involved in both the U.S. and EU jurisdictions. Others can also benefit as the current regulatory framework for FinTech is still under development.
• Upon completing the course, participants will: i. unlock the complexity of the main legal issues (e.g. security regulation, privacy, antitrust policy and crimes) related to emerging technologies, from blockchain to AI, in the context of finance (FinTech); ii. recognize the impact that these technologies have on society with a concentration on the financial sector; iii. appraise strengths and weaknesses in the current cryptoassets regulatory framework; iv. develop a critical thinking on technology v. regulation.

Every participant will bring their own unique expertise and experience to the discussion. No prior knowledge is required.