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<p class="news_release_date">November 30, 2022</p>
<p> </p> <p><a target="_blank" href="https://customsitesmedia.usc.edu/wp-content/uploads/sites/142/2022/11/30135504/SOURCE-3.jpg" rel="noopener"><img loading="lazy" class="size-medium wp-image-34690 aligncenter" src="https://customsitesmedia.usc.edu/wp-content/uploads/sites/142/2022/11/30135504/SOURCE-3-300x200.jpg" alt="" width="300" height="200" srcset="https://customsitesmedia.usc.edu/wp-content/uploads/sites/142/2022/11/30135504/SOURCE-3-300x200.jpg 300w, https://customsitesmedia.usc.edu/wp-content/uploads/sites/142/2022/11/30135504/SOURCE-3-280x187.jpg 280w, https://customsitesmedia.usc.edu/wp-content/uploads/sites/142/2022/11/30135504/SOURCE-3.jpg 600w" sizes="(max-width: 300px) 100vw, 300px"/></a></p> <p>Members of Congress will <a target="_blank" href="https://www.reuters.com/technology/us-senate-hold-ftx-hearing-dec-1-cftc-chairman-testify-2022-11-21/" onclick="javascript:_gaq.push(['_trackEvent','outbound-article','http://www.reuters.com']);" rel="noopener">convene</a> on Dec. 1 in what would be the first of a number of probes into the latest implosion of crypto big FTX and the regulatory gaps uncovered by its collapse. USC specialists can be found to debate what the downfall of digital currencies like FTX and BlockFi imply for the destiny of digital property in an already precarious exonomy, and what we are able to count on from the upcoming congressional hearings.</p> <p><strong>Contact</strong>: Nina Raffio at <a target="_blank" href="https://news.google.com/__i/rss/rd/articles/mailto:raffio@usc.edu" rel="noopener">raffio@usc.edu</a> or (213) 442-8464</p> <h3>Volatility threatens bankruptcies for corporations linked to cryptocurrency</h3> <p>Michael Simkovic</p> <p><a target="_blank" href="https://customsitesmedia.usc.edu/wp-content/uploads/sites/142/2022/11/30135510/SOURCE2.png" rel="noopener"><img loading="lazy" class="size-full wp-image-34691 alignright" src="https://customsitesmedia.usc.edu/wp-content/uploads/sites/142/2022/11/30135510/SOURCE2.png" alt="" width="150" height="150" srcset="https://customsitesmedia.usc.edu/wp-content/uploads/sites/142/2022/11/30135510/SOURCE2.png 150w, https://customsitesmedia.usc.edu/wp-content/uploads/sites/142/2022/11/30135510/SOURCE2-60x60.png 60w, https://customsitesmedia.usc.edu/wp-content/uploads/sites/142/2022/11/30135510/SOURCE2-135x135.png 135w, https://customsitesmedia.usc.edu/wp-content/uploads/sites/142/2022/11/30135510/SOURCE2-80x80.png 80w" sizes="(max-width: 150px) 100vw, 150px"/></a>“Cryptocurrencies are illiquid, unstable property with excessive transactions prices and a scarcity of really clear pricing. Their valuations are speculative, and attributable to under-regulation, inclined to manipulation and deception.</p> <p>“Bankruptcies may entail the auctioning off of huge volumes of cryptocurrency, in addition to traces of enterprise that revolve round using blockchain applied sciences. These auctions may reveal priceless details about the true worth of cryptocurrencies and block-chain-based companies. We might quickly uncover that many cryptocurrencies have little if any worth, and plenty of companies funded via the issuing of tokens can't generate enough revenue and money flows to justify their pre-bankruptcy speculative valuations.</p> <p>“Cryptocurrency arguably resembles a commodity. However not like gold or wheat or oil, crypto doesn't have any apparent use to companies or customers. It could be helpful for tax or regulatory avoidance, however that worth is prone to decline quickly as tax and regulatory authorities clamp down on abuses. That is significantly seemingly given Russia’s present worldwide isolation and ties between many cryptocurrencies and Russian companies.”</p> <p><a target="_blank" href="https://gould.usc.edu/faculty/?id=73520" rel="noopener">Michael Simkovic</a> is a professor of regulation and accounting at <a target="_blank" href="https://gould.usc.edu/" rel="noopener">USC Gould School of Law</a>. His analysis focuses on the intersection between regulation and finance, with a specific emphasis on credit score markets, monetary regulation, and taxation. His work has been revealed in main journals together with The College of Chicago Legislation Overview, The Journal of Company Finance and the Journal of Authorized Research.</p> <p><strong>Contact</strong>: <a target="_blank" href="https://news.google.com/__i/rss/rd/articles/mailto:msimkovic@law.usc.edu" rel="noopener">msimkovic@law.usc.edu</a></p> <h3>Is crypto right here to remain?</h3> <p><a target="_blank" href="https://customsitesmedia.usc.edu/wp-content/uploads/sites/142/2022/11/30135512/SOURCE1.png" rel="noopener"><img loading="lazy" class="size-full wp-image-34692 alignleft" src="https://customsitesmedia.usc.edu/wp-content/uploads/sites/142/2022/11/30135512/SOURCE1.png" alt="" width="150" height="150" srcset="https://customsitesmedia.usc.edu/wp-content/uploads/sites/142/2022/11/30135512/SOURCE1.png 150w, https://customsitesmedia.usc.edu/wp-content/uploads/sites/142/2022/11/30135512/SOURCE1-60x60.png 60w, https://customsitesmedia.usc.edu/wp-content/uploads/sites/142/2022/11/30135512/SOURCE1-135x135.png 135w, https://customsitesmedia.usc.edu/wp-content/uploads/sites/142/2022/11/30135512/SOURCE1-80x80.png 80w" sizes="(max-width: 150px) 100vw, 150px"/></a>Digital property professional <a target="_blank" href="https://www.marshall.usc.edu/news/three-questions-james-healy-ftx" onclick="javascript:_gaq.push(['_trackEvent','outbound-article','http://www.marshall.usc.edu']);" rel="noopener">James Healy</a> thinks so. Outdoors of his position as an adjunct professor of finance and enterprise economics at <a target="_blank" href="https://www.marshall.usc.edu/" onclick="javascript:_gaq.push(['_trackEvent','outbound-article','http://www.marshall.usc.edu']);" rel="noopener">USC Marshall</a>, Healy additionally serves as president of Digital Disbursements, a digital funds supplier, and founding father of JFH Capital, an funding agency.</p> <p>“From crypto particular information (e.g., FTX) to macro-economic issues such because the potential of a looming recession and a rising rate of interest surroundings, there are a lot of components impacting the digital property market at the moment. Within the long-term, the digital property market will mirror the worth that the know-how and folks within the trade contribute to the financial system and society. My underlying perception within the energy of blockchain primitives like good contracts, digital possession, distributed consensus, and extra stays as robust as ever.</p> <p>“My hope is that considerate regulation will come to the blockchain trade to boost stability and transparency. Within the short-term, complete regulation appears unlikely, however no matter regulation, people can select to conduct enterprise with extra transparency companions. For instance: a publicly traded alternate with revealed audited financials (e.g., Coinbase) or a stablecoin with month-to-month attestation experiences from a good impartial auditor (e.g., USDC).”</p> <p><strong>Contact</strong>: <a target="_blank" href="https://news.google.com/__i/rss/rd/articles/mailto:jameshea@marshall.usc.edu" rel="noopener">jameshea@marshall.usc.edu</a></p>
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