In March 2018, the U.S. Securities and Exchange Commission (“SEC”) announced that it will begin proceedings to determine whether it will permit a NYSE Arca rule change proposal to list and trade two bitcoin-related exchange traded funds (ETFs). 1 In its review, the SEC will seek to determine the rule’s consistency with the Securities Exchange Act…
Tag: Bitcoin
Bitconnect: A Case Study in the Government Regulation Paradox
Within the past year, cryptocurrency has undoubtedly become the hottest topic of discussion in the investing world. A “collective insanity” over cryptocurrencies has spurred something akin to a 21st century gold rush.1 This is clearly reflected in the valuation of the cryptocurrency market as a whole. The cryptocurrency market cap increased by over 3,300%…
Regulatory Responses to the Rise of ICOs
Ten years ago the cryptocurrency market did not exist and blockchain technology was unknown to the world.1 As of the date of writing, the total cryptocurrency market cap stands at $364.5 billion and there are over 1,515 different cryptocurrencies.2 The growth in cryptocurrency markets is “without a doubt one of the fastest explosions of wealth…
Differences between the Bitcoin System and the U.S. Monetary System
The Bitcoin system provides rules and features that have a divergent effect from those of the U.S. monetary system. Although the Bitcoin system provides some advantages, it does not provide a solution to every deficiency of the U.S. monetary system. Following are some differences, advantages, and disadvantages between the Bitcoin system and the U.S….
China’s Push Against Cryptocurrency
Bitcoin, arguably the most famous cryptocurrency, is notably volatile. Within 2017 alone, Bitcoin has faced two major crashes and recoveries.1 Yet, so far, keeping money in Bitcoin, and in the cryptocurrency market more generally, has been wildly profitable.2 In fact, cryptocurrency’s market capitalization in the last year was about six times that of the dot-com…
Bitcoin Regulation
Recently, Mark Wetjen, a commissioner of the Commodity Futures Trading Commission, published an op-ed in The Wall Street Journal calling for the regulation of the digital currency, Bitcoin.1 Citing the need of merchants to hedge exposure to fluctuations in Bitcoin’s value, trading platforms beginning to list Bitcoin derivatives contracts, its financial innovative capabilities, and the…