Law360 Quotes Benesch Partner Aslam A. Rawoof on Stablecoin Bankruptcy Risk

Benesch is pleased to share that Partner Aslam A. Rawoof was featured in a recent Law360 article, offering key commentary on the legal landscape of stablecoin-related bankruptcies.

The article, “Stablecoin Law Risks Instability For Crypto Bankruptcies”, highlights Rawoof’s perspective on the challenges bankruptcy lawyers may face in representing token holders. In the article, Rawoof is quoted as saying, “If the investors are treating the stablecoin as a liquidity vehicle akin to a money-market fund, then the issue is not whether they’re going to get back 100 cents on the dollar. The issue is more the speed and ability to convert the stablecoin into cash.” 

This candid observation underscores the uncertainty surrounding the legal priority of stablecoin holders in the bankruptcy process—posing a potential deterrent for lawyers to represent issuers when they may find themselves subordinated to token holders.

Benesch continues to monitor evolving developments in cryptocurrency regulation and bankruptcy law. Rawoof’s participation in the article exemplifies the firm’s engagement with emerging legal issues in the digital assets space.

More: Stablecoin Law Risks Instability For Crypto Bankruptcies – Law360 Bankruptcy Authority