The regulation of financial services in the U.S. is based on a bank-centric model established for the conditions that existed 90 years ago after the Great Depression. Today’s financial services world is far more diversified with less of it regulated. As a result, we continue to see events that seriously destabilize our financial system.
As the Administration considers the future of financial services regulation, it is time to evaluate how we can create a financial regulatory system that (i) reduces financial stability risks ignored by asymmetrical oversight, (ii) confronts known structural risks created by the digital economy and (iii) deploys and utilizes predictive artificial intelligence to deal with threats before they spiral out of control.
Gary Rinkerman is a partner at the law firm of FisherBroyles LLP, an Honorary Professor of U.S. Intellectual Property Law at Queen Mary University in London, and a Senior Fellow at the Center for Assurance Research and Engineering (“CARE”) in the College of Engineering and Computing at George Mason University, Virginia. For those interested in “digital archeology,” Professor Rinkerman also successfully argued one of the first cases in which copyright in object code was enforced and he co-founded and served as Editor-in-Chief for Computer Law Reporter, one of the first legal publications (in the 1980s) to focus exclusively on law and computer technologies. This article should not be considered legal advice. The presentation of facts and the opinions expressed in this article are attributable solely to the author and do not necessarily reflect the views of any persons, organizations or entities with which he is affiliated or whom he represents. The author would also like to thank J.P. Auffret, Director of CARE, for his continuing support and for his expertise in the frontier areas of Artificial Intelligence.
