Exploring Contours of Digital Jurisprudence in the Context of Fintech and Judicial Economics

Abstract

The rapid evolution of Financial Technology (FinTech) has significantly disrupted traditional financial and legal paradigms, creating complex challenges for regulatory institutions and judicial systems. This research explores the dynamic interplay between digital jurisprudence and judicial economics in the FinTech ecosystem, examining how courts adapt legal principles to emerging technologies such as cryptocurrencies, algorithmic trading, and AI-driven financial services. The paper investigates the inadequacy of conventional legal frameworks to regulate decentralized and cross-border financial innovations, emphasizing the need for adaptive legal reasoning that incorporates economic implications. Through doctrinal and empirical methodologies, the study analyzes key case laws, including RBI v. Internet and Mobile Association of India (2020) and SEC v. Ripple Labs (2023), to illustrate how judicial decisions influence financial policy, market stability, and consumer protection. A comparative analysis of regulatory approaches in the EU, U.S., and India highlights global fragmentation and the potential for regulatory arbitrage. Judicial economics is presented as a critical tool to balance innovation with legal enforcement, enabling courts to perform cost-benefit analyses in
high-stakes financial disputes. The research advocates for harmonized global regulation, stronger consumer safeguards, and the institutionalization of regulatory sandboxes to promote responsible innovation. Ultimately, the paper concludes that courts, through an integrated lens of law and economics, must evolve legal doctrines that are technologically relevant and economically sustainable in the digital age.