Kik, Kin, digital, innovation, cryptos, cryptoassets, cryptocurrencies, decentralization, ICO, SEC, initial coin offering

The Wall Street Journal recently reported that Kik, a messaging app that raised close to $100 million dollars in a 2017 initial coin offering (ICO) of its “Kin” token, is challenging a proposed Securities and Exchange Commission enforcement action against the company. As has been discussed by…

cryptoassets, Kareken-Wallace, currency substitutes, cryptocurrencies

Some prominent economists have begun to analyze formally the market for a privately issued outside money that they associate with Bitcoin. Rodney Garratt and Neil Wallace (2018) (ungated version here) model the relative values of (exchange rates between) “Bitcoin 1” and other hypothetical cryptoassets (“Bitcoin 2,” etc.)….

cryptocurrencies, cryptoassets, bitcoin, securities regulation, howey test, howey coin, sec, securities and exchange commission

Should cryptocurrencies be regulated like securities? Financial regulators have been pondering this question for some time. In a Briefing Paper published today by the Cato Institute’s Center for Monetary and Financial Alternatives, I suggest that securities regulation would only seem warranted in certain clearly circumscribed cases. For…

cryptocurrency, cryptoassets, Bitcoin, financial regulation

When the New York Attorney General launched an inquiry into cryptocurrency exchanges last week, his office cited “significant volatility, instability, and risk” as motivating factors for the probe. This echoes statements by International Monetary Fund chief Christine Lagarde and Agustín Carstens of the Bank for International Settlements….