Feature

Balancing acts: prudential regulation of money issuers

This article explores the regulatory capital requirements that apply to the issuers of two types of money: bank deposits and stablecoins. Where relevant it also considers issuers of e-money. Stablecoins are an increasingly popular form of digital money. They are bearer instruments that run on blockchains. As explained in the second half of the article, they are quite different to existing forms of money.

Novation of loan facilities: impact on guarantees and borrower declarations

In this article Lisa Lacob considers arguments run on the basis that novation of loan facilities extinguish the original contract and replace it with a new one. Much will depend on the precise terms of the loan facilities and associated guarantees, but prudent lenders will want to make sure that certain terms cover the possibility of novation.

Digital Assets and (Electronic) Trade Documents in Private International Law

Amy Held introduces the Law Commission’s law reform project ‘Digital Assets and (Electronic) Trade Documents in Private International Law’ following the publication of the Consultation Paper and third FAQ document on 5 June 2025.

Fantastic cryptos and where (not) to find them: prudential rules for the digital age

Since their main-stream inception with Bitcoin in 2009, cryptocurrencies have evolved dramatically, emerging as a transformative asset class distinct from traditional flat currencies. Cryptocurrencies and distributed ledger technology have introduced significant efficiencies, such as greater transactional transparency, faster settlement processes and increased financial accessibility. As a result, the market has grown exponentially, achieving a market capitalisation f approximately US$3.93trn (as at 22 July 2025), signifying deepening integration within the global financial system. 

Notwithstanding the successes, a string of scandals, including the collapse of crypto ventures such as Celsius, BlockFi and Terra and the implosion of FTX, has brought renewed focus on the volatility and liquidity of such instruments and their systemic impact. In response to the rapid evolution and integration of cryptocurrencies, the Basel Committee developed a detailed prudential framework designed to manage the associated risks effectively. This article examines these developments and their implications for banks globally, and addresses whether the rigid classification into Group 1 and Group 2 cryptoassets strikes an appropriate balance between prudential conservatism and enabling banks to engage competitively within this evolving market. 

Mind the gap: UK stablecoin rules create uncertainty

The UK government’s recent decision not to proceed at this time with extending the payment services regulatory framework to fiat-referencing stablecoins marks a significant policy reversal. The previous government’s phased approach offered time and flexibility to address difficult boundary questions and ensure coherent treatment aligned with economic function. By collapsing regulation of cryptoassets into a single legislative phase for both fiat-referencing stablecoins and other cryptoassets, the current Draft Order risks a lack of functional differentiation between payment instruments and investment assets, as well as territorial ambiguity. This article explores the UK’s shift in approach, highlighting points of interpretive uncertainty and divergence from developments in the US.

Show me the money: value leakage in European high-yield bonds

In this article, James McDonald, Kenneth Ryan and Michael Chern provide an overview of how high-yield bond covenants regulate the movement of a company’s cash and assets beyond the reach of creditors, or “value leakage”, and recent trends in these covenants, with a focus on the European high-yield market.

Removing blots from the copybook: third-party rights and HNW Lending Ltd v Lawrence

The authors consider HNW Lending Limited v Lawrence  [2025] EWHC 908 (Ch), in which Andrew Lenon KC expressly departed from the ruling of HHJ Dight CBE in the analogous case of HNW Lending Limited v Mark   (unreported, Central London County Court, 7 August 2024). Both cases concern whether, and on what basis, a security agent for a lender may sue under the loan agreement by reference to the Contracts (Rights of Third Parties) Act 1999.

The Supreme Court tweaks Etridge

English property law periodically produces epoch-making decisions of the highest court. In years to come, Waller-Edwards v One Savings Bank plc [2025] UKSC 22 may well become such a decision. It enjoys the respectable jurisprudential lineage of three famous House of Lords’ decisions: (i) Barclays Bank v O’Brien  [1994] 1 AC 180;  (ii) CIBC  Mortgages v Pitt   [1994] 1 AC 200; and (iii) Royal Bank of Scotland v Etridge No 2   [2002] 2 AC 773, but it also applies established principles in a novel way. In this article, Marc Beaumont considers why the Supreme Court reached the decision that it did including a look at the social policy considerations that influenced it.

Financial crime reforms creating new risks and challenges for firms

The Economic Crime and Corporate Transparency Act has introduced a novel failure to prevent fraud offence, as well as extending the criminal attribution doctrine to hold large firms liable for the actions of a wider range of senior managers. In this article the authors consider these reforms as well as areas of uncertainty and new risks. They provide some practical guidance.

Layering it on thick: the evolution of the super senior intercreditor agreement

It has been over five years since the Loan Market Association (LMA) published its form of super senior/senior intercreditor agreement for use on European direct lending transactions. While this document has become the starting point for intercreditor agreements on almost all of these transactions in Europe, there have been a number of evolutions to its terms during this period to reflect the requirements of financial sponsors as they look at more complex capital structures to meet the financing needs of their portfolio companies. This article tracks some of these developments and looks ahead to further changes which may be on the horizon.