Working Paper: NBER ID: w31301
Authors: Joshua S. Gans
Abstract: This paper investigates the alignment of existing securities regulations with the emerging landscape of crypto-tokens and blockchain technology. By examining the features of these digital assets, including decentralization, consensus mechanisms, and programmability, we analyze how they interact with existing financial rules. We compare approaches to regulation across countries, considering potential impacts on innovation. Furthermore, we explore the issues that may arise with blockchain networks, such as payment efficiency and market safety. The study aims to contribute to discussions about balancing innovation within the blockchain sphere and ensuring investor protection and market security, underlining areas that may necessitate regulatory improvements.
Keywords: cryptotokens; blockchain technology; securities regulation; innovation; investor protection
JEL Codes: K22; O38
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| characteristics of cryptotokens (E42) | effectiveness of current regulations (G18) |
| regulatory approach (L51) | innovation potential of blockchain technology (O35) |
| regulatory frameworks (G38) | market safety (G18) |
| market characteristics (D49) | safety and efficiency of transactions involving cryptotokens (E42) |