How the Market, Not Government, Regulates Cryptocurrency Crimes

Nicholas Anthony andIvane NachkebiaWhile policymakers have been busy formulatingsweeping changes and regulators have been busydebating jurisdiction, some participants in the cryptocurrency industry have been busy regulating the space themselves. And considering that all too often the word “regulation” follows the word “government,” we shouldn’t be too quick to overlook the fact that the market too is capable of creating a level of order and regularity. In the case of cryptocurrency, part of this effort to create order and regularity has taken the form of countless individuals and organizations seeking to combat fraud and scams.Ivane Nachkebia and I noted this reality of regulation inour recent comment letter to the U.S. Department of the Treasury. However, when the Treasury issuednew sanctions restricting all U.S. citizens from accessing the Tornado Cash protocol, it quickly became apparent that this idea needs to reach a wider audience. Given the nature of blockchain technology and available private resources, the blanket ban on using open ‐​source code, in addition to havingpotential legal ramifications, was not only an objectionable application of the law, but also an unnecessary one.As we explained in our comment letter, decentralized cryptocurrencies are unique in that they can be freely analyzed by anyone at any time. The code behind their design, the transactions taking place, and the history of their use are all openly available. And while...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs