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Are you afraid of Cryptocurrency?

It's a brand new term for various tangible belongings or intangible belongings, but they’ve been round for centuries. Maybe we are solely afraid of unfamiliar or disappointing / fraudulent actions in securities and the variability of this value. Okay, this part is an effective factor.

  What is cryptocurrency?

John Berlau did a unprecedented job with this abstract and, after having had an extended dialogue with Mr Berlau, there’s extra to it. On the similar time, you can take pleasure in his abstract. Your remark has been invited.

Limitless Cryptocurrency and SEC Circuit Breakers

Why speculative shopper items aren’t securities

Many questions are asked about cryptocurrency. Is it a serious innovation that improves the usual of dwelling in ways we will't think about? Or is it a classy phenomenon that leads to a speculative bubble of risky belongings? The reply to these questions might be: each above. New technologies have typically produced bubbles that cause great disruption. But when the bubble has exploded and mud has stabilized, the benefits of innovation will survive and lead to new, sudden advantages.

Nevertheless, the idea of cryptocurrency has been round because the beginning of civilization. Cryptocurrency provides an digital dimension to the privately issued foreign money and tokens that have existed in much of the world historical past, because the totally different roles took on the position of cash without the government enjoying a lot, if any, position. For example, cow shells, shells of giant snails, which have been utilized as a change medium within the 13th century B.C. For the 20th century in giant elements of Africa and Asia and scattered areas in Europe [1]

Within the American colonies and within the early days of the republic, tobacco shares, additionally referred to as tobacco notes, have been distributed in money. Many of the great unique American states of the tobacco shares soon began for use to purchase other merchandise. [2] Within the early and mid-20th century, hundreds of currencies from banks and other companies have been distributed in the USA. For example, the Howard Banking Company issued a word taken within the image of Santa Claus in the 1850s, which might be redeemed at $ 5 gold or silver [3]

So cryptocurrency is in a single sense part of the long tradition of privately issued money extra. [4] Bitcoin and different cryptocurrencies are peer-to-peer networks which are unanimous and make electronic cash for remote transactions with out bank-like intermediaries [5] Unfortunately, its promise of reworking transformative innovation could be superb to stop heavy weight regulation

] SEC Threatens Regulation. Among the federal financial regulators, nobody poses a larger menace to secrecy and associated blockchain technologies than the Securities and Trade Fee (SEC). Created in the 1930s by police "securities" similar to shares, bonds and mutual funds, it was inevitable that the SEC regulation would interact with cryptocurrency. The SEC is competent for US listed corporations' financial statements that give cryptocurrency or settle for cost for cryptocurrency, as well as over funding corporations that maintain cryptocurrency corporations or cryptocurrency in their portfolios. Beneath the Securities Act, the SEC has the facility to make sure that corporations precisely describe info associated to the company's cryptocurrency activities to buyers. In recent times, nevertheless, the SEC has explicitly corrected cryptocurrency corporations which have made stricter remedies and have referred to as for cryptocurrency merchandise that Congress by no means gave it. In addition, the idea of SEC chairman Jay Clayton strives to maintain cryptocurrencies in securities to stretch the definition of "security" so extensively that even gadgets resembling collector's cartoons might fall beneath SEC jurisdiction.

Even earlier than the cryptocurrency turned a scene, the SEC's more and more robust hand has grow to be beneath control, as start-ups have the chance to boost capital and better middle-income buyers for their investments. Criticism by both the SEC and the securities laws it has adopted has been criticism of paperwork by teachers, entrepreneurs, buyers and members of Congress, making it troublesome for both entrepreneurs to boost capital for the public market and for buyers to seek out prosperity opportunities. This concern urged Congress to make it simpler to manage overwhelmingly in Jumpstart Our Enterprise Startups (JOBS), signed by President Obama in 2012. In 2018, the US House of Representatives authorised a invoice that permits aid, jobs and investor confidence [6]

some burdens for entrepreneurs and buyers by eradicating bans on promoting in personal corporations and releasing small and "rising" rising corporations from the burden of sure priceless securities such because the Sarbanes-Oxley Act of 2002 and the Dodd-Frank Act of 2010. t

So there was an optimistic cause when President Trump appointed Jay Clayton to act as chairman of the SEC and stated he hoped that Clayton "would abolish many regulations that have stifled investment in American companies and restore financial control in a way that does not harm American workers." [7] Clayton has targeted on this request to ease the regulatory burden. his time to increase the SEC's objective to go after Congress has by no means given it powers to manage. Clayton stretches the term "securities", often defined as shares, bonds and investment contracts, to cover cryptocurrency publications and to deliver them beneath the jurisdiction of the SEC, using the cryptocurrency "bubble" as a foundation.

The identical repressive SEC regulation for publicly listed corporations has made the cryptocurrency market more risky and created uncertainty concerning the improvement of associated blockchain applied sciences, which usually depend on the cryptocurrency program as an incentive for developers to maintain them operating.

Clayton's considerations about know-how bubbles are mistaken. The dot-com bubble of the early 2000s is an ideal instance of what the well-known Austrian economist Joseph Schumpeter referred to as "creative destruction". [8] The worth of the stock market of many high-flying Internet corporations actually disappeared because it had risen. Nevertheless, when the mud landed, the innovations of the Web period, corresponding to e-commerce and search engines like google and yahoo, have been nonetheless close and flourishing, comparable to giants like Google and Amazon. By 2006, over 80 million People, or 42 % of households, had a broadband connection that has now grown to 92 %. [9] At the similar time, on-line buying changed the retail trade [10]

from Cryptocurrency to Blockchain. Might cryptocurrencies and blockchain know-how create the inspiration of innovation for rail and the Internet? Robust evidence exhibits that the reply is yes, especially concerning the connection between cryptocurrency and blockchain. Revolutions can occur not solely in cash but in addition in libraries and accounting. Nevertheless, the innovation process follows a equally flattering path of prior methods

Before the primary cryptocurrency undertaking Bitcoin was developed, all remittance transactions needed to be made by way of centralized intermediaries coping with the cost and protecting monitor of the transaction. That is largely a matter of monitoring cash and avoiding double spending, for instance, by creating a number of electronic photographs value the identical $ 10. [11] As a result of copying a digital item could be very straightforward, scammers might attempt to purchase a number of gadgets in a single foreign money. [12] Merely sending pc information as a cost would not provide a reliable assurance that the cash was transferred. Subsequently, banks and different intermediaries stored a central register of events that have been determined if the payer had rights to these funds.

Cryptocurrency has changed all this by creating scarce digital characters which were validated in a peer-to-peer community of identifiers referred to as "blockchain". (The time period is used and not using a word in the plural when referring to many "blockchaines" that record numerous events.) Blockchain accounting to make sure that Bitcoin distribution might be managed in a decentralized, peer-reviewed method that might permit encryption as an alternative of scripts. central authorities of corporations or authorities. Nakamoto declared: "We’d like an digital cost system, based mostly on belief as an alternative of an encryption certificates, through which case all prepared events can trade instantly with each other without the need for a trusted third social gathering. Transactions which are computationally impractical would forestall distributors from fraud, and routine credit score mechanisms might easily be carried out to protect consumers. ”[13] [Emphasis added]

Blockchain works as a shared masterpiece, the place multiple customers maintain the encrypted knowledge a transaction. Every block in the chain shops a plurality of occasions that embrace all of the important info that’s added to the chain and related to the earlier block. As defined within the Nakamoto White Paper, blockchain is a "timestamp server" where "each timestamp contains the previous timestamp, … forms a chain, and each extra timestamp confirms them before it." The timestamp is then cut up into "a peer-to-peer network that uses evidence of a history of public events that quickly becomes computationally impractical to allow the attacker to change." [15] Its potential is being explored in a number of totally different areas to deal with long-term issues.In January 2017, the US Meals and Drug Administration, in collaboration with IBM's Machine Studying Division, announced that Watson will use the blockchain platform to securely share info on digital health info and medical trials Blockchain reaches seemingly contradictory objectives in phrases of safety and privacy and the power to get medical merchandise quick approved medical professionals. It allows sufferers to consult docs and nurses with confidence that their information is protected from potential hackers. [16]

The traits of blockchain know-how can also be an necessary think about land reform. Nicely-known improvement economist Hernando de Soto has stated that blockchain might be so variable that it might secure the possession rights of creating nations, that "I feel a great moral obligation to focus on my life" know-how. [17] De Soto and Lima, a Liberty and Democracy (ILD) Institute in Peru, are presently working with Bitfury, a blockchain know-how company, to determine a land registry for the Republic of Georgia. [18] DeSoto additionally seeks to determine comparable blockchain-based registers in Africa, South America and Asia. [19] The purpose of ILD tasks is to store regionally recognized land properties in a block trade utilizing the cryptocurrency program to create a public ledger that data and warrants land and water rights for the benefit of both small farmers and miners and multinational corporations.

Even cryptocurrency critics, similar to former Federal Reserve Governor Kevin Warsh, admit that blockchain-based know-how could be useful. Nevertheless, they argue that it might be totally different from the cryptocurrency and its supposed problems. [20] However cryptocurrencies or digital indicators are mandatory to take care of blockchain-based strings by encouraging its recorders to carry out crucial roles.

How the federal government transcends innovation and aggravates bubbles. Experimenting and error becomes a hit. Subsequently, much of the know-how destiny is dependent upon authorities coverage. Fraud have to be punished, but the government should not transcend any rules that would cease innovation. The world won’t ever know the complete potential of cryptocurrency and blockchain if heavy regulatory regulation prevents entrepreneurs from experimenting with new approaches and purposes.

Defending Entrepreneurs from Exceeding the Authorities is necessary not only to ensure that society advantages from constructive innovation, however

In the case of a technical bubble, one of the usually missed elements behind the crash was the anti-Microsoft antitrust rule of Clinton. On April 3, 2000, Decide Thomas Penfield Jackson thought-about that Microsoft had violated Sherman's competition guidelines and is in conflict with the government that the mixing of Microsoft's net browser into its operating system constituted a restriction of illegal trade vis-à-vis its rivals. Microsoft shares fell by virtually 15 % of the news on this judgment. Some consider that the majority the key know-how corporations, together with Microsoft's rivals, also saw their shares of their possession. The NASDAQ inventory market dropped 350 factors at present and misplaced 8% of its value. [21] Tech stocks as a gaggle continued to decline over the subsequent two years. In fact, the dot-com accident is a too complicated phenomenon on account of one cause, however the authorities's prosecution from Microsoft was clearly not useful.

Much of the cryptocurrency & # 39; s obvious chest is as a result of the federal government threatens to cross properly. At the start of 2017, the worth of Bitcoin, the world's largest circulating cryptocurrency, had not yet reached $ 1,000. [22] By the top of the yr, it was traded for more than $ 13,000 [23] when it reached almost $ 20,000 a couple of weeks earlier within the CoinDesk Bitcoin worth index. [24]

Different cryptocurrencies comparable to Ether and Litecoin followed Bitcoin's rise in costs in 2017 and collapsed with it in early 2018. Because the end of 2018, Bitcoin has been traded on most inventory exchanges for slightly below $ 4,000 until it rose to over $ 5,000 originally of April 2019. Although much of the payments have been on account of overheated markets, which lastly cooled, the worry of government assaults was more likely to play a big position in this decline. When the information broke down, China might ban certain cryptocurrency exchanges, Bitcoin's worth dropped 10 % a day. When China truly denied these choices 5 months later in February 2018, the worth fell by an analogous amount. [25]

In america, hostility cryptocurrency has come from the whole political spectrum. Some pundits, reminiscent of the former Federal Reserve Governor Warsh, appointed by President George W. Bush and sometimes commenting on cryptocurrency within the monetary press, including The Wall Road Journal and CNBC, have acknowledged foreign money innovations, however have referred to as for the Federal Reserve to grant its personal digital foreign money and decrypt its personal foreign money options. [26] Rep. Brad Sherman (D-Calif.) Has said that "blockchain is a good technique", nevertheless it supported its unique monetary use in the central financial institution foreign money. "There is nothing that can be done with cryptocurrency, which cannot be done by a sovereign, worthy and useful to society," he stated. [27]

SEC because the beginning of 2017 SEC has rejected more than ten separate proposals for investments to sell listed funds (ETFs) held by Bitcoin to retail buyers [28] The rejection of the Bitcoin ETF in July 2018 brought a robust disagreement with Commissioner Hester Peir, who urged the SEC to differentiate between cryptocurrency funding automobiles which have stricter guidelines than other ETFs. The rejection of the SEC, he stated, "implies an aversion to innovation that can convince entrepreneurs that they should take their inventiveness to other sectors of the economy or to a foreign market where their abilities are more enthusiastically welcomed." The SEC ought to make sure that the company is correctly publicized and not act as a gatekeeper for innovation. Peirce also warned that this operation might end in a probably safer investment in Bitcoin out of the reach of middle-class buyers who might buy a foreign money in a cryptocurrency change from the SEC – now. "This unpleasantness unintentionally weakens investor protection," he stated. “It prevents investors from accessing bitcoin through exchange rates that provide predictability, transparency and easy access and exit.” [29]

Most Cryptocurrencies usually are not securities. SEC's response to this "investor protection" drawback would create more restrictions on investor selection by extending the SEC's powers to cryptocurrency itself and to cryptocurrency exchanges reminiscent of Coinbase, which are answerable for consumers and sellers. Without legislative modifications, congressional intentions or perhaps a formal rule, the SEC has despatched alerts via enforcement actions and statements by officials, and that new issuers of cryptocurrency might should go through the identical cumbersome securities registration process as issuers

in a report analyzing a cryptocurrency operating system referred to as "DAO". signs with cryptocurrency Ether, and characters that qualify for voting rights and "rewards." The DAO co-author compared the platform to "buy company shares and get … dividends." [30] The SEC marked DAO marks as unregistered 'securities' however didn’t take enforcement measures that would have been partly because DAO had stopped its operator and the members had already returned it [31] Because the DAO system has been explicitly promoted as an investment platform – distinctive as a function that doesn’t exist in most cryptocurrencies publications – the SEC report was not extensively seen as threatening a broader cryptocurrency market. [32]

Quickly after having issued a DAO report, SEC started to challenge desist orders not only to communities that provide cryptocurrency as part of the funding structure, but in addition to entrepreneurs who had not given permission to return on funding. It was thought-about a "safety" of the digital Munchee coin, though it was not advertised as an investment, however was provided as a reward to the authors of the restaurant app for a similar identify. After finishing a sure number of critiques, the authors would obtain tokens that could possibly be redeemed free of charge or for a lowered meal. Nevertheless, the SEC followed these coins as a result of of a speculative aftermarket, and the restaurant app was agreed to stop offering them on the finish of 2017. [33]

The president of the SEC, Clayton, then informed Congress at the start of 2018 that he had never seen a coin or a sign that he didn't assume was "security." [34] In line with the Cryptocurrency information website, tons of of cryptocurrency elements in the SEC are "known to be" secretly "targeted" and that these corporations and individuals "at the moment are concealing to clarify whether or not their brands are safety and in that case, is it registered within the SEC or released it. ”[35]

Cryptocurrency is considered“ Security ”Might set cryptocurrency out of center class buyers because of the similar paperwork – both SEC laws and monetary guidelines such as the Sarbanes-Oxley Act 2002 and Dodd- Frank 2 Regulation zero10 – which has prevented small buyers from getting into the early-stage progress corporations. Forcing laws on securities corresponding to Sarbanes-Oxley and Dodd-Frank to doc public statistical info has quadrupled the price of auditing and made the publication of new corporations unreasonably costly. In consequence, most of the businesses that publish immediately are giant, dominant corporations. Wealthy “Accredited Investors” have been the one ones who succeeded of their early progress levels [36] “Everyone who participates in the field is nervous,” SEC writes in the well-known know-how writer George Gilder in 2018 in Life After Google. "The danger is that it will expand the spirit to which it has led the economy of entrepreneurship and drive industry out of the country." [37]

There’s additionally the danger of blockchain know-how – and any reworking improvements that would circulate from – whether the SEC had stored cryptocurrency "security." The influential statutory article by Jeffrey Alberts and Pryor Cashman, a monetary know-how specialist (FinTech), affiliates that the appliance of securities regulation to cryptocurrency could possibly be to hundreds of members of peer-to-peer networks to be registered with the SEC as issuers of securities. [38] This will even be a block diagram that isn’t used primarily for cryptocurrency. If those that keep such a block chain are changed by certain varieties of cryptocurrency or digital tokens, as within the current apply of many blockchain know-how operations, they could nonetheless should register as securities issuers in response to the relevant rules.

Many commentators have found that SEC thinks cryptocurrency is a "security" that’s part of the unique intentions of securities legal guidelines. As Gilder writes, “Tokens are not company ownership, but rather different goods, services, gift cards and other elements of the company's value proposition. … Companies always sell goods and services in many different ways without any idea of ​​the SEC. ”[39]

Along with DAO, the SEC does not claim that the majority of the cryptocurrency would resemble shares or bonds. Cryptocurrency does not in itself present equity pursuits or promised curiosity or return on funding. As an alternative, SEC considers many new cryptocurrency publications as securities, because it claims to suit the broad definition of "investment agreement". In June 2018, Invoice Hinman, CFO of the SEC, argued that although the established currencies reminiscent of Bitcoin and Ether usually are not now securities, they have been once they have been created. [40] In a letter despatched to Ted Budd (RN.C.) on March 7, 2019, Clayton stated that he accepted Hinman's claim that the cryptocurrency, which was “at first… security”, might not meet this definition. Hinman, Clayton didn’t specify what cryptocurrencies he felt could not be categorised as securities. Clayton didn’t report main modifications to SEC's angle in the direction of cryptocurrency bids. As an alternative, he claimed that the SEC was simply implementing federal securities laws, which "define" security "extensively to cover almost all instruments that can be sold as an investment." [41]

It is maintained that the majority cryptocurrency has been purchased for speculative purposes. service contracts [42]. "In this case, the events are clearly linked to so-called investment agreements," the Supreme Courtroom declared. “Responding corporations supply one thing greater than mere benefits over land, something aside from a farm or orchard, and management providers. They provide the chance to cash in and distribute the income of giant citrus fruit corporations owned and partially owned by the respondents. "[43]

In the DAO report and other publications, the SEC has referred to the" Howey test "because of the Supreme Courtroom case as it provides it the power to manage many cryptocurrencies securities. [44]

But, even beneath the "Howey Investment Agreements, the cryptocurrency is not covered by the statutory definition of" securities ". that the house owners of grove & # 39; s shares often shouldn’t have the proper to certain fruit. 06] In a current letter to the SEC, which is more likely to be a threatening authorized problem, legal professionals in Canada's well-liked social community, Kik, argue that the SEC has stretched the definition of "security", and particularly the definition of "investment agreement" that the Supreme Courtroom adopted greater than 70 years in the past SEC: v. WJ Howey Co., 328 US 293, 301 (1946), along with its unique which means and intention. ”[47] The letter was a response to SEC's preliminary choice that Kik violated laws on securities when it provided the members of the social community a encryption foreign money referred to as Kin. Based on Kiki's letter, the SEC has never argued that Kik would have made any fraud in the supply, so the difficulty is merely the issuance of a cryptocurrency with out paperwork for the supply of securities [48]. it fails. " [49] The letter mentions a word from the ninth Circuit Panel that "although the subjective purpose of buyers may have some impact on whether they have entered into investment agreements, we must focus our research on what was offered or promised to buyers." [50]

At first of April, SEC revealed a steerage doc in response to the calls for of the legislators and the cryptocurrency group with a purpose to make clear how it intends to use the securities legislation. Quinn, a outstanding FinTech lawyer and CoinList's basic advisor, stated: “This goes for the test of the safety of the three Howey tests over 40 peaks.” [52] It ought to be famous that the information SEC [53]

One of the new elements that the SEC appears to regard as encrypted security is the existence of an aftermarket that had previously been half of the Howey check. Within the case of the 1946 Supreme Courtroom, there was never a query of promoting oranges from Howey magazines on totally different markets. The Courtroom discovered that the shares of the olive groves have been securities as a result of the individuals have been entitled to a share of the income and provisions of the precise service contracts which obliged the unique proprietor to keep the magazines in favor of the members. Nevertheless, the SEC information mentions the term "aftermarket" seven occasions. The information advises that even in instances the place coins can be utilized in an lively market for commodities and providers, "securities transactions can occur if… there are no restrictions or restrictions on the resale of digital assets." [54]

The SEC laajennettu määritelmä, joka on "käytännöllisesti katsoen mikä tahansa väline, jota voidaan myydä sijoituksena", Claytonin sanoissa tai tuotteessa, jolle on olemassa "jälkimarkkinat", uhkaa sekä cryptocurrency että monet liiketoiminta-alat. Quinn sanoo: "Kun olet lukenut tämän, mielestäni lentoyhtiöiden mailia ja jälleenmyyjäpisteitä voitaisiin pitää arvopapereina", huomauttaen, että jotkut näiden kohteiden tuotemerkit ovat siirrettävissä, ja siksi niitä voidaan pitää "jälkimarkkinoilla." [55] Sivuston avulla käyttäjät voivat esimerkiksi hallita palkitsemispisteitä, mutta myös vaihtaa niitä.

On myös monia fyysisiä tavaroita viineistä sarjakuvakirjoihin, jotka kuluttajat ostavat sekä nauttimiseen että spekulatiivisiin tarkoituksiin ja jotka SEC voisi väittää säätelevänsä ”arvopapereina” sen perusteena cryptocurrency -asetuksen säätämiseksi. Esimerkiksi sarjakuvakirjoilla oli 1980-luvulla ja 1990-luvulla jopa suuri teollisuuskupla, kun kustantajat painoivat monia uusia erikoisversioita, osittain keräilijöille ja spekulaattoreille. Monet sarjakuva-alan vähittäiskauppiaat ja liikkeeseenlaskijat kärsivät konkurssin aallosta, kun kupla puhkesi 1990-luvun puolivälissä. SEC ei kuitenkaan pyytänyt säätämään sarjakuvamarkkinoita – tai baseball-korttien markkinoita – [56]

On paljon liittovaltion ja valtion virastoja, joilla on paljon selkeämpi toimivalta kuin SEC: ssä poliisin cryptocurrency -petoksia. Digitaaliset valuutat on itse asiassa kutsunut yhden tarkkailijan ”yhdeksi FinTechin säännellyimmistä aloista”. Finanssikriisinvalvontaverkosto, Federal Commerce Fee ja eri valtion virastot ovat jo vakuuttaneet toimivaltansa cryptocurrencies-järjestelmissä. [57] Congress can even replace laws on the books to extra clearly and narrowly define federal businesses’ jurisdiction. For cryptocurrency and other new technologies to flourish, shoppers, buyers and entrepreneurs have to be shielded from the overreach of the SEC.

Both cryptocurrency and blockchain are getting into their second decade. As with many rising young technologies, they have completed a lot in their first decade, but have but to bloom absolutely into maturity. That’s all the extra cause to guard them from what Nobel Laureate economist Milton Friedman referred to as the “invisible foot” of government regulation, and as an alternative let their progress be guided by the hundreds of invisible palms of the marketplace.[58]


[1] “Cowry Shells: a Trade Currency,” National Financial institution of Belgium, Boban Docevski, “Cowry Shell Coins: an Ancient Monetary System Based on Sea Shells Used on Almost Every Continent,” The Classic News, January 21, 2018,

[2] Sharon Ann Murphy, “Early American Colonists Had a Cash Problem. Here’s How They Solved It,” Time, February 27, 2017,

[3] “The Birth of the Dollar Bill,” Planet Money, Episode 421, National Public Radio, December 7, 2012,

[4] For more on this tradition, see Friedrich A. Von Hayek, Denationalisation of Money: An Analysis of the Concept and Follow of Concurrent Currencies (London: Institute of Economic Affairs, 1976).

[5] Peter Van Valkenburgh, “Exploring the Cryptocurrency and Blockchain Ecosystem,” Testimony before the U.S. Senate Committee on Banking, Housing, and Urban Affairs, October 11, 2018, p. 47,

[6] John Berlau, “Let Middle-Class Investors Join the ‘Accredited’ Club,”, August 27, 2018,

[7] “Trump Nominates Jay Clayton Chairman of the SEC,” Reuters, January 4, 2017,

[8] Joseph Schumpeter, Capitalism, Socialism and Democracy (New York: Harper, 1975) [orig. pub. 1942]pp. 82-85, Literature and the Culture of Info, Schumpeter wrote that the “process of Creative Destruction is the essential fact about capitalism. It is what capitalism consists in and what every capitalist concern has got to live in.”

[9] 2018 Broadband Deployment Report, Federal Communications Fee,

[10] Daniel Gross, “The Bubbles that Built America,” CNN Money, undated, accessed February 4, 2019,

[11] Ibid.

[12] Chris Berg, Sinclair Davidson, and Jason Potts, “What Does the Blockchain Mean for Government? Cryptocurrencies in the Australian Payments System,” RMIT Blockchain Innovation Hub, p. 3,

[13] Satoshi Nakamoto, “Bitcoin: A Peer-to-Peer Electronic Cash System,” White Paper, Undated however circa 2008, p. 1,

[14] Nakamoto, pp. 2-8.

[15] John Berlau,”Let’s Maintain Cryptocurrency Mines Operating in Human Achievement Hour and Each Hour,”, March 24, 2018,

[16] Crypt Bytes Tech, “Medicalchain—A blockchain for electronic health records,”, November 16, 2017,

[17] Gillian Tett, “Bitcoin, blockchain and the fight against poverty,” Monetary Occasions, December 27, 2017,

[18] Richard Kastelein, “Georgia to Store Real Estate Documents in Blockchain System with Bitfury Group and Hernando de Soto,” Blockchain News, January 10, 2017,

[19] Andrew Nelson, “De Soto Inc.: Where Eminent Domain Meets the Blockchain,” Bitcoin Journal, Might 5, 2018,

[20] Ana Alexandre, “Former US Federal Reserve Governor Says Federal Digital Currency Deserves Consideration,” Cointelegraph, Might 5, 2018,

[21] Jake Ulick, “NASDAQ sinks 350 points,” CNN Cash, April Three, 2000,

[22] Pete Rizzo, “Bitcoin Worth Tops $1,000 in First Day of 2017 Buying and selling, Coindesk, January 1, 2017,

[23] “Historical Snapshot–December 31, 2017,” CoinMarketCap,

[24] Stan Higgins, “From $900 to $20,000: Bitcoin’s Historic 2017 Price Run Revisited,” CoinDesk, December 29, 2017,

[25] Diego Zuluaga, “Should Cryptocurrencies Be Regulated like Securities,” CMFA Briefing Paper No. 1, Cato Institute, June 25, 2018, pp. 3-Four,

[26] Alexandre.

[27] “The Future of Money: Digital Currency,” Listening to before the Home Monetary Providers Committee Subcommittee on Financial Policy and Trade, July 18, 2018,

[28] Nikhilesh De, Stan Higgins, and Muyao Shen, “SEC Rejects 9 Bitcoin ETF proposals,” CoinDesk, August 22, 2018, Simon Chandler, “A Brief History of the SEC’s Reviews of Bitcoin ETF Proposals,” CoinTelegraph, April 1, 2019,

[29] Hester Peirce, Dissent to Release No. 34-83723; File No. SR-BatsBZX-2016-30, July 26, 2018,

[30] Securities and Change Commission, “Report of Investigation Pursuant to Section 21(a) of the Securities Exchange Act of 1934: The DAO,” Launch No. 81207, July 25, 2017,

[31] C. Thea Pitzen, “SEC Issues Warning on Token and Digital Currency Use,” American Bar Association, January Four, 2018,

[32] Samuel Falcon, “The Story of the DAO—Its History and Consequences,” Medium, December 24, 2017,

[33] Katherine Cooper, “SEC Munchee Order a Recipe for Securities Violations,” CoinDesk, December 22, 2017,

[34] Stan Higgins, “SEC Chief Clayton: Every ICO I’ve Seen Is a Security,” CoinDesk, February 6, 2018,

[35] C. Edward Kelso, “Hundreds of ICOs Being Secretly Investigated by SEC, Claims Report,”, October 9, 2018,

[36] John Berlau, “Let Middle-Class Investors Join ‘Accredited’ Club,”, August 27, 2018,

[37] George Gilder, Life After Google (Washington, DC: Regnery Gateway, 2018), p. 181.

[38] Jeffrey E. Alberts and Bertrand Fry, “Is Bitcoin a Security,” Trustees of Boston University,

[39] Ibid. Zuluaga. Paul Paray, “No, Not All ICOs Are Securities,” Coindesk, February 18, 2018,

[40] William Hinman, “Digital Asset Transactions: When Howey Met Gary,” Speech at Yahoo Finance All Markets Summit: Crypto, Securities and Trade Fee, June 14, 2018,

[41] Letter from Securities and Change Commission Chairman Jay Clayton to Consultant Ted Budd, March, 7, 2019,

[42] Chitra Ragavan, “How a 1920s Florida Citrus Land Baron Created the Acid Test for Crypto Tokens,”, November 14, 2017,

[43] SEC v. Howey, 328 U.S. 293,

[44] Ibid.

[45] Ibid.

[46] Alberts and Fry, “Is Bitcoin a Security?”

[47] Letter (“Wells Submission”) from Kik Interactive, Inc., and the Kin Ecosystem Foundation to the Securities and Change Commission, December 10, 2018, p. 2,

[48] Ibid, p. 14.

[49] Ibid.

[50] Ibid., p. 17, citing Warfield v. Alaniz, 569 F.3d 1015, 1021.

[51] “Framework for ‘Investment Contracts’ Analysis of Digital Assets,” Securities and Trade Commission, April 3, 2019,

[52] Phone Interview with Georgia Quinn, April 5, 2019.

[53] The steerage may be thought-about what CEI’s Wayne Crews has termed “regulatory dark matter,” outlined as company issuances that are not officially “rules” but however carry regulatory weight. Clyde Wayne Crews, “Mapping Washington’s Lawlessness: An Inventory of Regulatory Dark Matter 2017 Edition,” Concern Evaluation 2017 No. Four, Competitive Enterprise Institute, March 2017,

[54] Framework, p. 11.

[55] Quinn.

[56] Jonathan V. Last, “The Crash of 1993,” Weekly Commonplace, June 13, 2011,

[57] “Virtual Currency: Financial Innovation and National Security Implications,” Hearing earlier than House Financial Providers Committee Subcommittee on Terrorism and Illicit Finance, June Eight, 2017, p. 29 (Q&A with Rep. Warren Davidson questioning witness Jerry Brito),

[58] Emily Parker and Joseph Rago, Eds., “Friedman’s Sampler,” Wall Road Journal, November 18, 2006,