The rise of new technologies is changing the way companies raise funds. Along with increased popularity of crowdfunding in recent years, a new form of funding has emerged – that is, the use of Initial Coin Offerings, or ICOs. In 2017, companies in the United States raised over $4 billion through ICOs; in 2018, more than $21 billion was raised. ICOs generate many challenges for securities regulators and also give rise to other issues including corporate governance, data protection, anti-money laundering and insolvency.
Assistant Professor Aurelio Gurrea-Martínez from the SMU School of Law has conducted legal research on financial regulation. In this podcast, he shares his recent comparative and interdisciplinary study which addresses the issue of ICOs and makes recommendations to regulators and policy makers in a way that aims to promote innovation and firms’ access to finance without harming investor protection, market integrity and the stability of the financial system.