Regulating Bitcoin: On What Grounds?
Luther, William J. 2016. "Regulating Bitcoin: On What Grounds?" In Reframing Financial Regulation: Enhancing Stability and Protecting Consumers, Hester Peirce and Benjamin Klutsey (eds.). Arlington, VA: Mercatus Center at George Mason University.
25 Pages Posted: 17 Jul 2015 Last revised: 20 Feb 2018
Date Written: May 13, 2016
Bitcoin is a relatively new technology with much promise. As the world’s first successful cryptocurrency, it seems likely to lower the costs of transacting. Nonetheless, many regulators hold a strong presumption that something must be done. I considered the popular justifications for regulating bitcoin with the idea of efficient regulation in mind. I also offer some simple guidelines for regulators to keep in mind while moving forward.
Keywords: Bitcoin, Budgetary Policy, Consumer Protection, Cryptocurrency, Drug Trade, Illegal Transactions, Illegal Transfers, Macroeconomic Policy, Monetary Policy, Regulation, Silk Road, Terrorism
JEL Classification: E41, E42, E50, G21, G23, G28
Suggested Citation: Suggested Citation