Abstract
Without much aid from MPT [modern portfolio theory], how should courts approach claims of imprudent investment in cryptocurrency? Courts might take this lack of aid as itself relevant. If MPT cannot place cryptocurrency in a portfolio, then perhaps fiduciary investors should refrain from doing so. Taking this approach would, however, overextend the prudent investor rule’s reliance on MPT. While the creators of the prudent investor rule certainly relied on MPT, the prudent investor rule does expressly adopt it. Moreover, courts should be wary of fixing investment practices in place. It would be ironic if the prudent investor rule, which intended to bring new theories of investing to the law,12 could be used to calcify investment practices to the mid-1990s.
If MPT does not provide any ready answers, then what governs the investment decision? This Article attempts to sketch the most important issues for fiduciary investors to consider prospectively (and courts to consider retrospectively).
This abstract has been taken from the author's introduction.
Document Type
Article
Publication Date
2025
Publication Information
94 Mississippi Law Journal 193-250 (2025)
Repository Citation
Chason, Eric D., "Crypto and the Fiduciary Investor" (2025). Faculty Publications. 2253.
https://scholarship.law.wm.edu/facpubs/2253
