Decentralized cryptocurrencies like Bitcoin and Ethereum are analogous to commodities like gold. There is no central authority that makes or manages them, but rather open communities of people working together to build an unowned public good. That said, cryptocurrency technology can be used to create tradable tokens that function more like securities. Understanding how specific networks function and what roles various actors in the system have is essential to parsing the difference.
We lay out the case for treating some cryptocurrencies as securities—and some not.
Testimony before the House Financial Services Committee