Toward a Coherent International Framework for Traditional and Crypto Securities

This Article explores the extent to which the international legal frameworks for traditional finance (“tradfi”), securities and crypto securities can be aligned. We demonstrate that this is feasible in many instances, such as in the context of investor protection, corporate actions processing, attachment, enforcement of rights, and insolvency. This ties in with the regulatory paradigm of “same activities, same risk, same regulation/regulatory outcomes.” In some scenarios, however, differences in the underlying technology need to be taken into account, for example in respect of the finality of transactions. Convergence of the legal landscape for tradfi and crypto securities would reduce complexity and cost and thus enable the securities markets to operate more smoothly.