Yesha Yadav is a legal scholar and professor at Vanderbilt University Law School, where she holds the Milton R. Underwood Chair in Law. Her expertise covers financial market regulation, securities law, and corporate bankruptcy, with research focusing on both traditional financial systems and emerging cryptocurrency markets. ^{[4] [9]}

Education

Yadav earned a Master of Arts in Law and Modern Languages from the University of Cambridge, where she graduated with First Class honors. She later attended Harvard Law School, where she obtained a Master of Laws (LL.M.). Her studies at Harvard focused on financial and capital markets regulation, payment systems, and terrorist financing. ^{[1] [2]}

Career

Yadav began her legal career in 2004 at the international law firm Clifford Chance, working in its London and Paris offices. During her tenure until 2008, she was an attorney in the financial regulation and derivatives group. A key project during this period involved advising the European Payments Council on the establishment of the Single Euro Payments Area (SEPA), an initiative designed to integrate domestic payment systems across Europe to make cross-border euro payments equivalent to domestic ones.

In 2009, she transitioned to the public sector, joining the World Bank as a legal counsel. She worked within the finance, private sector development, and infrastructure unit, where her specialization included financial regulation, insolvency, and creditor-debtor rights

Yadav entered academia in 2011, joining the faculty at Vanderbilt University Law School. As a Professor of Law and the Milton R. Underwood Chair, her teaching and research center on financial market regulation, securities law, and corporate bankruptcy. Her scholarship examines market structure, exchange design, and payment systems for both traditional and digital assets. Her research interests include the regulation of cryptocurrencies and stablecoins, distressed debt and corporate restructuring, and risk management in both centralized (CeFi) and decentralized (DeFi) financial markets. In addition to her teaching and research, Yadav holds several administrative roles at Vanderbilt, including Associate Dean and Robert Belton Director of Culture and Community, as well as Faculty Co-Director of the LL.M. Program. ^{[2] [3]}

Interviews

Binance Settlement

In a November 2023 interview with CNBC, Professor Yadav addressed the implications of the historic settlement between the U.S. government and Binance, the world's largest cryptocurrency exchange. The settlement, marked by the Binance CEO's guilty plea to violating the Bank Secrecy Act, indicated a significant shift in how the exchange would operate, potentially altering its governance and compliance structures. Yadav highlighted the broader impact this settlement might have on the cryptocurrency industry, warning that exchanges—particularly those offshore—would need to prioritize regulatory compliance amid increasing scrutiny from U.S. authorities. She expressed concerns about the slow progress in establishing a comprehensive regulatory framework for the crypto sector, especially in light of clearer standards being developed in regions like the European Union and Singapore. Yadav underscored the need for a cohesive international approach to avoid a “race to the bottom” in regulatory standards and to ensure customer protection and market integrity in the evolving landscape of digital assets. ^[5]

Treasury Market Risks

On the Macro Hive Conversations podcast in January 2023, Yadav discussed the challenges and dysfunctions within the U.S. Treasury markets, characterizing them as fundamentally broken despite being considered a safe asset class. She reflected on her journey from studying modern languages and law to becoming an expert in financial regulation and market structure, noting the significant changes in the Treasury market since the 2008 financial crisis, which have led to a shift toward automation and high-frequency trading. Yadav pointed out that, while the actual U.S. Treasury bonds remain free from default risk, the trading environment has become problematic, particularly in terms of liquidity and market depth.

She highlighted the increased pressures from macroeconomic factors, such as inflation and rising interest rates, which have exacerbated the fragile state of the market. The discussion included reflections on the regulatory landscape, advocating for enhanced transparency and more systematic safeguards to bolster market resilience. Despite ongoing efforts to improve regulations following events like the COVID-19-related liquidity crisis, Yadav expressed skepticism about the current market structure's stability and its implications for investors. ^[6]

Stablecoins and CBDCs

In a May 2023 interview with CNBC, Professor Yadav discussed her recently co-authored paper on stablecoins and Central Bank Digital Currencies (CBDCs). The paper, which took approximately six months to complete, explored how these digital currencies could enhance the U.S. payment system, making it more efficient and inclusive, particularly for unbanked and underbanked populations. Yadav highlighted the existing inefficiencies in the U.S. payment infrastructure and compared it to the advancements made by other countries, such as Brazil and India, in terms of digital payment innovations. She emphasized the potential of stablecoins and CBDCs to address issues like high transaction costs and slow payment processing while stressing the importance of thoughtful regulation to mitigate risks associated with new technologies. The report aimed to provide policymakers and industry leaders with a framework for leveraging digital assets effectively while ensuring the safety and inclusivity of the financial system. ^[7]

Presentations

Centralization in Crypto

At the UCSB-ECON DeFi Seminar in May 2024, Yadav delivered a talk discussing the centralization paradox in cryptocurrency markets, drawing parallels with historical trading mishaps like the trader Ninda SRA, whose dubious practices led to significant market chaos without regulatory intervention. She emphasized the vital role that traditional exchanges play in overseeing markets through self-regulation and called into question the current state of cryptocurrency exchanges, arguing that their unique structure and lack of effective oversight create the potential for harmful practices, as exemplified by the failures of platforms such as FTX. Yadav posited that while self-regulation among crypto exchanges could be a necessary first step toward better market accountability, it is insufficient without formal regulatory frameworks. She highlighted the importance of enhancing oversight mechanisms by leveraging the structural advantages of cryptocurrency exchanges and engaging them as responsible participants in the regulatory landscape to foster a safer trading environment, especially given the vulnerable demographics often involved in crypto markets. ^[8]