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Regulatory ambiguity in the market for bitcoin

Author

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  • William J. Luther

    (Florida Atlantic University)

Abstract

The standard economic approach to considering the effects of a policy tends to neglect the prospect of regulatory ambiguity. I describe four sources of regulatory ambiguity and survey the literature considering the effects of ambiguity on entrepreneurial activity. I also explain how jurisdictional redundancy, where multiple agencies regulate the same action or industry, increases the likelihood of regulatory ambiguity. I offer a brief description of the regulatory environment of bitcoin in the United States in order to provide specific examples of the sources of regulatory ambiguity identified herein.

Suggested Citation

  • William J. Luther, 2022. "Regulatory ambiguity in the market for bitcoin," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 35(1), pages 1-14, March.
    • Handle: RePEc:kap:revaec:v:35:y:2022:i:1:d:10.1007_s11138-019-00489-2
    DOI: 10.1007/s11138-019-00489-2
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Ambiguity; Bitcoin; Cryptocurrency; Regulation; Political economy;
    All these keywords.

    JEL classification:

    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G2 - Financial Economics - - Financial Institutions and Services
    • H1 - Public Economics - - Structure and Scope of Government
    • K2 - Law and Economics - - Regulation and Business Law
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior

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