An Emerging Political Economy of the BlockChain: Enhancing Regulatory Opportunities

Abstract

Blockchains are inherently secure, encrypted technologies, enabling electronic transaction processing, communications, authentication, and recordkeeping. Blockchain circumvents traditional (banking) systems, promising transaction cost savings and speculative profits. Blockchain is an open, encrypted and distributed ledger system underlying crypto-currencies (BitCoin) and initial coin offerings (ICO). Both masquerade as media of exchange. Future blockchain applications include supply chains, identity management and healthcare information exchange. Blockchains’ technical complexity obscure comprehension by many legislators, regulators, lawyers and judges. Libertarian technologists cheer these barriers to regulation. This paper explores blockchain operations, reviews evolving cryptocurrency policies, and proposes regulatory approaches, urging expanded jurisdiction over blockchain bubbles.