Communications of the ACM
The Challenges of Regulating Cryptocurrency
While the agency takes its time setting clear rules, the industry is left continuing to guess.
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Securities and Exchange Commission Chair Gary Gensler has referred to cryptocurrency markets as being "like the Wild West” and “rife with fraud, scams, and abuse." Even before Gensler's arrival, the S.E.C. has had a fraught relationship with the market for digital coins, tokens, and virtual currencies such as bitcoin, many of which reside on giant, decentralized electronic ledgers that use blockchain technology.
The S.E.C. has failed to keep up; thousands of tokens and digital currencies have been introduced, and new companies and platforms have emerged to help store and trade them. The lack of regulations over this burgeoning area has created an opening for widespread fraud. But this might be just the way the S.E.C. wants things to be.
From The New Yorker
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