The New Jersey State Bar Association offers 80 sections, committees and divisions for members to stay apprised of the latest trends in their specialty, shape legislation and become better attorneys for their practice and clients. The NJSBA’s Banking, Fintech and Digital Assets Law Section recently adopted a new name to better reflect its commitment to staying current amid the rapid transformation of the financial services industry over the past decade. Section Chair Steven T. Knipfelberg, a partner at McDermott Will & Schulte, recently discussed the evolving role of technology in banking, how these advancements impact everyday life and how the section is working to keep pace. Visit njsba.com to learn more.
You’ve been involved with the Banking, Fintech and Digital Assets Law Section for about seven years. How has your involvement in the section benefited you both personally and professionally?
It’s been a great opportunity to connect with colleagues across the space. The conversations have been especially engaging because the section brings together a diverse group of attorneys in private practice who represent banks, creditors and secured lenders, alongside in-house counsel from financial institutions throughout New Jersey. Having that mix of perspectives has made it invaluable to exchange ideas and discuss the issues shaping the industry and identify where things are headed. Ultimately, those insights strengthen our collective ability to better serve the financial institutions across the state.
The section recently expanded to include fintech and digital assets. What prompted this change, and how does it reflect the evolving nature of banking law?
Banking law has traditionally centered on banks, particularly in the 20th century when they were largely brick-and-mortar institutions where people deposited and withdrew funds, safeguarded assets, obtained loans and other necessities. In the 21st century, however, the concept of banking has expanded significantly. Today, it includes fintech companies and digital platforms – applications like PayPal or Venmo – that have reshaped how financial services are delivered, as well as the growing role of digital assets. We’re now seeing traditional financial institutions actively entering the digital asset space. From my perspective on the front lines, the line between traditional finance and emerging technologies is rapidly blurring. The section’s evolution is about ensuring that the bar association reflects these changes and remains aligned with the direction of the financial services industry. Also, New Jersey in particular has emerged as a hub for fintech and digital asset companies, including exchanges and financial institutions that have been early adopters in this space. Its proximity to New York, combined with a distinct regulatory environment and strong talent pool, has made it an attractive location for these businesses.
Digital assets, crypto, blockchain are relatively new phenomena. Looking ahead, what do you see as the most significant legal developments likely to shape banking, fintech and digital asset law over the next five years?
The most significant legal developments will likely center on the push for federal regulation. This includes federal initiatives like the GENIUS Act, along with broader efforts such as the proposed CLARITY Act, which aim to establish a cohesive regulatory framework for digital assets. The core objective of these measures is to provide clear rules of the road that define the regulatory oversight, compliance expectations and permissible activities within the industry. That kind of clarity is critical. As the regulatory environment becomes more defined, we can expect more participation from the traditional financial institutions. Banks in particular tend to be cautious. Once they understand the guardrails – who the regulators are, what the requirements entail, how risks are managed – they are far more likely to expand into digital assets. At the same time, we’re seeing a broader shift in both market adoption and perception. Cryptocurrency is no longer a niche product. About one in five adult Americans own it. It’s increasingly relevant to both Main Street and Wall Street. With a growing percentage of Americans holding digital assets, the demand for clear regulation and institutional involvement will only continue to rise. These trends point to significant growth in the sector over the next five years and beyond.
Banking law was once considered a relatively specialized field. With the rise of fintech, digital payments and digital assets, how are these issues now affecting attorneys in other practice areas – and why should they be paying attention?
As adoption of these technologies grows, we’re seeing issues in a wide range of practice areas. Bankruptcy attorneys, for example, are now dealing with crypto-related insolvencies. Family law practitioners are encountering disputes involving the valuation and division of digital assets. Criminal defense attorneys and government investigators are grappling with cases where cryptocurrency plays a central role. Digital assets are naturally intersecting with more areas of law as they become integrated into everyday life. What was once a niche topic is now showing up across the board, affecting how attorneys approach everything from litigation to compliance. For attorneys outside of traditional banking law, paying attention to these developments is increasingly important.
As you said, New Jersey is a hub for attorneys who practice in banking and digital assets. What is your best pitch for attorneys in this space to join the section?
The core pitch is that digital assets are not a passing trend. They are becoming a fundamental part of the financial system and everyday life. They are relevant to businesses and individuals alike, and they play a growing role in inveshttps://njsba.com/unused-pages-holding-page/membership/join-a-section/#opentment portfolios, commercial transactions and legal disputes. Attorneys who are not yet familiar with these developments risk falling behind as these issues become more commonplace across different practice areas. By joining the section, attorneys can connect with a network of peers who are actively working at the forefront of these changes. It’s an opportunity to stay informed and build expertise in a rapidly evolving area of law.