Sep 20, 2021
Lat’s start with the discussion of why we should regulate cryptocurrencies. Most people in this field now hope to increase the stability and trust of cryptocurrencies through government supervision. If we want to have cryptocurrencies, we should regulate them, but we may need to develop a new legal category of non-sovereign legal tender.
We need to rethink the orthodoxy established based on the observation of community interests and organizational heterogeneity, so as to liberate ourselves from “a slave of some defunct economist.” The same is true of crypto community currencies.
As a micro form of government, companies may adopt traditional actions of government such as currency issuance. This is a new problem for companies-- the company is a “wreathed Leviathan”. The company is actually a “replica” of the country, a chained behemoth, which has legal personality and legislative power like a country and is authorized by the state to manage enterprises.
Effectively supervising the entry of companies into the cryptocurrency field, especially when the U.S. dollar has been most directly challenged by the digitization of other traditional sovereign currencies, may be an opportunity for the U.S. government to shape the future of the international financial market.
The US regulatory system is seriously lagging behind in regulating non-sovereign legal currencies. We should realize that cryptocurrency is a newly established form of currency. In this process, we need to evaluate the organizational quality of the autonomous community behind the cryptocurrency which has appropriate structures, procedures, and incentives. Crypto community is developing its own currency, and our regulatory system must catch up.