Regulating Innovative Financial Products (facilitated by Jay Clayton & James McDonald, Sullivan & Cromwell LLP)

Web3 has seen an explosion of experimentation and innovation in traditional financial products, which has led to a whole new lexicon in finance, including Automated Market Makers (AMMs), yield farming, liquidity mining and flash loans. Industry players have also increased their efforts to bring more traditional financial products like derivatives and ETFs to digital assets. This session will discuss the impact of these innovations on traditional finance and its various players like intermediaries, custodians and clearing agents, and consider how global regulators should be approaching these products. This session will also explore controversial regulatory decisions around crypto lending and the SEC’s refusal to allow ETFs based on Bitcoin cash / spot markets even though it allows ETFs in Bitcoin futures.