Every Friday, Law Decoded delivers analysis on the week’s critical stories in the realms of policy, regulation and law.
Technology is by and large not the major barrier — though many in the industry have a decent bit of hubris about it. More important is that people, whenever their money is on the line, get mighty conservative. Which is not necessarily greedy or unreasonable, but it is why it was easier for lawmakers to greenlight email than electronic signatures.
Conservatism surrounding money also means that old systems have to fail in a pretty conspicuous fashion for anyone to seriously talk about reforming or even discarding them. Think about how grotesque the subprime mortgage bubble of 2008 looked as regulators and news outlets dug through its wreckage in subsequent years: That’s what it took for Dodd-Frank to pass into law.
The whole Robinhood turbulence at the end of last month is not in the same league. But any