ISDA Publishes New Digital Asset Definitions, White Paper on Navigating Bankruptcy in Digital Asset Markets

In a recent client alert, Goodwin partner John Servidio and associate Adam Fovent discuss the International Swaps and Derivatives Association’s (ISDA) Digital Asset Derivatives Definitions. As ISDA CEO Scott O’Malia observed, the Digital Asset Definitions are intended to “establish an unambiguous, standardized contractual framework for digital asset derivatives under the umbrella of the ISDA Master Agreement that, among other things, spells out the rights and obligations of both parties following a market disruption.” Launching in the wake of recent market turmoil, the Digital Asset Definitions were accompanied by the first in a series of two planned ISDA white papers, which are intended to assist the market in navigating the novel legal and commercial issues posed by bankruptcies in the digital asset markets.