Davis Polk partner Robert Cohen was quoted in Hedge Fund Law Report discussing the issues and risks that private funds face from emerging technologies, such as crypto and AI. 

Noting the evolving regulatory environment, Robert explains that “Unlike past governments, the second Trump administration has a very positive approach to crypto and is working to facilitate economic activity in that area.” He adds, “However, the change in approach has mostly taken the form of guidance or been reflected in the exercise of enforcement discretion, as opposed to new rules or legislation. It is therefore an interesting time for private funds that wish to engage more vigorously in crypto and other emerging technologies because there are less restrictions, but that is largely a matter of government discretion.”

Discussing the types of crypto cases that may emerge under the second Trump administration, Robert says, “A major market event can affect the SEC’s priorities and degree of oversight, especially when the event occurs in an area of regulatory uncertainty. It will be interesting to see whether the SEC changes its views on crypto, and the extent to which crypto assets are considered securities, if there is a relevant market event.” 

The article also mentions the current state of crypto law and the uncertainties that remain. Robert notes that there has been some guidance about what is considered a security. “Traditionally, a security has been found when money is given to someone running a business with a view to that money being used to drive profits, which will then be shared. The last administration sought to expand that approach to encompass situations in which there is any economic activity and a desire to make a profit, even without clear reliance on the manager of a business. Under the new administration, there has been some guidance and speeches… indicating a return to the traditional view,” he noted.

“Emerging Technology Risks for Private Fund Managers,” Hedge Fund Law Report (January 29, 2026) (Subscription required)

Copy link to share post