In this episode of The Crypto Exchange, Ethan Ostroff welcomes Deb Kovsky and Alex Rovira, partners in Troutman Pepper Locke’s Bankruptcy and Restructuring practice, to explore the GENIUS Act’s approach to stablecoin insolvency. The discussion highlights the complexities and gaps within the current regulatory framework.

The episode provides a historical perspective on crypto bankruptcies, examining the GENIUS Act’s amendments to the bankruptcy code designed to safeguard stablecoin holders. It addresses the practical challenges of implementing these changes, particularly regarding the automatic stay and the exclusion of reserves from the debtor’s estate.

Deb and Alex offer insights into potential regulatory solutions, stressing the importance of establishing clear frameworks to build confidence among stablecoin holders. They also consider the feasibility of self-funded insurance models and capital requirements as ways to bridge existing gaps in the system.

Transcript: Ensuring Stability: The GENIUS Act’s Impact on Stablecoin Insolvency (PDF)

Photo of Ethan G. Ostroff Ethan G. Ostroff

Ethan’s practice focuses on financial services litigation and compliance counseling, as well as digital assets and blockchain technology. With a long track record of successful litigation results across the U.S., both bank and non-bank clients rely on him for comprehensive advice throughout their

…

Ethan’s practice focuses on financial services litigation and compliance counseling, as well as digital assets and blockchain technology. With a long track record of successful litigation results across the U.S., both bank and non-bank clients rely on him for comprehensive advice throughout their business cycle.

Read more about Ethan G. OstroffEmailEthan G.'s Linkedin Profile
Show more Show less
Photo of Deborah Kovsky-Apap Deborah Kovsky-Apap

Deborah provides clients with practical advice on bankruptcy, out-of-court workouts, and distressed M&A transactions, in addition to possessing substantial litigation and trial experience in the areas of insolvency and commercial law.

Read more about Deborah Kovsky-ApapEmailDeborah's Linkedin Profile
Photo of Alex Rovira Alex Rovira

Alex represents clients across a range of sophisticated transactions and restructurings, including workouts and cross-border transactions involving distressed debt, assets, and targets. As a key advisor to several of the largest banks and funds in the world, he also provides guidance to corporate…

Alex represents clients across a range of sophisticated transactions and restructurings, including workouts and cross-border transactions involving distressed debt, assets, and targets. As a key advisor to several of the largest banks and funds in the world, he also provides guidance to corporate boards, management, and sponsors on corporate governance matters and complex disputes.

Read more about Alex RoviraEmail
Show more Show less