Report from FTI Consulting and The Block Analyzes Regulatory Action Over Global Digital Assets Markets
Washington, D.C., August 17, 2023 — FTI Consulting, Inc. (NYSE: FCN) today announced that the firm’s Technology segment, in conjunction with The Block Pro, which provides research covering the digital assets, fintech and financial services industries, has released an in-depth examination of the state of digital assets enforcement and regulation worldwide. The report, Trends in Regulation of Digital Assets, provides detailed reporting of the new laws, litigation and government investigations across the blockchain and digital assets environment, including commentary and analysis from lawyers in the industry.
According to the report, all major international jurisdictions are increasing regulatory activity and oversight surrounding digital assets, though through a wide variety of approaches. The U.S. has pursued regulation by enforcement, wherein enforcement actions are taken to clarify and impose existing rules, rather than establishing new, dedicated laws for the industry. Under this approach, the Securities and Exchange Commission is on track to eclipse its 2022 enforcement action, which was up 50% from 2021. To date, the SEC has initiated 23 administrative proceedings or litigations in the digital assets sector, all under legacy legislation. Separately, the European Union, the United Arab Emirates, the UK and several countries in the Asia Pacific and Latin America regions have implemented robust regulatory frameworks directly aligned to digital assets, with some establishing processes for financial institutions to obtain special licensing to operate in digital assets markets.
“The nuanced infrastructures, varied products and technical intricacies across different forms of digital assets pose significant obstacles to the development and implementation of effective digital assets regulations,” said Steven S. McNew, a Senior Managing Director and Global Leader of Blockchain & Digital Assets at FTI Consulting. “Traditional regulatory approaches struggle to fully capture and address the industry’s complexities. Yet the absence of regulatory clarity makes it difficult for industry players to establish governance, innovate and pursue wider adoption. This research report provides a level set, which will help organizations better understand their risks and opportunities in the current regulatory environment, and plan for expected developments on the horizon.”
Read the full report from The Block Pro, with analysis from FTI Technology’s Blockchain & Digital Assets experts and leading lawyers in the industry, here. The lawyers who shared their insights for the paper include:
- Justin L. Browder, Partner, Willkie Farr & Gallagher LLP
- Mitzi Chang, Partner, Goodwin Procter LLP
- Meagan E. Griffin, Of Counsel, Fintech and Payments Group, Paul Hastings
- A. Kristina Littman, Partner, Willkie Farr & Gallagher LLP
- Nicholas J. Losurdo, Partner, Goodwin Procter LLP
- Robert A. Musiala Jr., Partner and co-leader of the Blockchain Practice, BakerHostetler
- Michael Selig, Counsel, Willkie Farr & Gallagher LLP
- Tiffany J. Smith, Partner, Wilmer Cutler Pickering Hale and Dorr LLP
- Karen Ubell, Partner, Goodwin Procter LLP
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Source: FTI Consulting, Inc.