Derivatives, Digital Assets, and AI in Financial Markets

With comprehensive digital asset market structure legislation before Congress, and the CFTC and SEC actively realigning their jurisdictional approaches, the regulatory perimeter for derivatives and digital assets is being redrawn in real time. This session examines the regulatory framework governing derivatives, futures, commodities, and digital assets as financial products and marketplaces continue to evolve. Drawing on current developments in derivatives regulation and digital asset markets, the session will address the respective roles of the CFTC, SEC, banking regulators, and other authorities, including jurisdictional questions that arise when traditional financial products intersect with cryptocurrencies and blockchain-based instruments. Attorneys will also explore how market participants can assess regulatory status, structure products and activities, and address compliance considerations as the boundaries between traditional derivatives and emerging digital assets continue to develop.

This session focuses on the rapidly expanding use of artificial intelligence in financial markets and the legal and regulatory issues created when AI is incorporated into trading, derivatives, compliance, risk management, and financial products. Attorneys will examine how existing regulatory frameworks apply to AI-enabled financial activity, where traditional rules may not adequately address emerging technologies, and the potential liability and compliance challenges created by automated decision-making and large language models. The session will also consider regulatory expectations, governance and oversight, explainability, data and model risks, and practical issues for financial institutions deploying AI in regulated environments. Attendees will leave with a practical roadmap for AI governance, documentation, and regulatory engagement.