This post builds on our previous exploration of indemnification for smart contract risks. Today, we suggest three tools to address these risks: (1) cybersecurity insurance policies, (2) indemnification agreements with outside vendors, and (3) “make whole” agreements among the smart
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The Blockchain Blog, published by Steptoe LLP, focuses on legal and regulatory developments related to blockchain technology, cryptocurrencies, and digital assets. It covers topics such as regulatory approvals and enforcement actions by agencies like the SEC and CFPB, the evolving legal framework for crypto products including bitcoin exchange traded products (ETPs) and stablecoins, and the impact of new rules on digital payments and financial promotions involving cryptoassets. The blog also analyzes jurisdiction-specific regulatory roadmaps, such as those in the UK, and discusses compliance challenges and supervisory authority over nonbank digital payment providers.
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Implications of S. 1241, the Combating Money Laundering, Terrorist Financing, and Counterfeiting Act of 2017
By Alan Cohn
Congress has become increasingly interested in the current state of knowledge about potential links between terrorist financing and money laundering. In the House of Representatives, the Financial Services Committee’s Subcommittee on Terrorism and Illicit Finance held a hearing on June…
My smart contract just ate $14 million—now what? Re-thinking indemnification for smart contract risks.
A Canadian digital currency exchange (QuadrigaCX) reported recently that a malfunction in a smart contract is responsible for a $14 million dollar loss of the cryptocurrency ether. You can read more about the company’s technical explanation here, but the upshot…
Finding Resiliency in Microgrids
By Alan Cohn & Travis West
This is the fifth and final in a series of posts that breaks down our article, “Smart After All: Blockchain, Smart Contracts, Parametric Insurance, and Smart Energy Grids,” recently published in the Georgetown Law Technology Review. We have discussed…
Rethinking the Energy Industry with Smart Meters
By Alan Cohn & Travis West
This is the forth in a series of posts that breaks down our article, “Smart After All: Blockchain, Smart Contracts, Parametric Insurance, and Smart Energy Grids,” recently published in the Georgetown Law Technology Review. We previously discussed the enforceability…
New Models of Insurance: Parametric Insurance
By Alan Cohn & Travis West
This is the third in a series of posts that breaks down our article, “Smart After All: Blockchain, Smart Contracts, Parametric Insurance, and Smart Energy Grids,” recently published in the Georgetown Law Technology Review. We previously discussed the enforceability…
Efficiency Gains in the Insurance Industry
By Alan Cohn & Travis West
This is the second in a series of posts that breaks down our article, “Smart After All: Blockchain, Smart Contracts, Parametric Insurance, and Smart Energy Grids,” recently published in the Georgetown Law Technology Review. We previously discussed the enforceability…
The Enforceability of Smart Contracts
By Alan Cohn & Travis West
This is the first in a series of posts that breaks down our article, “Smart After All: Blockchain, Smart Contracts, Parametric Insurance, and Smart Energy Grids,” recently published in the Georgetown Law Technology Review. First, we will discuss the…
Best Practices for Limiting Liability Arising from Smart Contract Vulnerabilities
It is no secret that smart contracts have vulnerabilities. Today’s post suggests a mix of best practices to limit potential liabilities that may arise when vulnerabilities interfere with smart contract performance.
But first, some background: One recent survey of 19,366…
Tips for Drafting Arbitration Clauses in Smart Contracts
We have suggested previously that arbitration may be a preferable alternative to court for smart contract disputes to (i) ensure a knowledgeable decision-maker handles the dispute, (ii) protect proprietary information, (iii) gain flexibility in scheduling and procedures, and (iv) pre-select…