As we've established before, the first step in regulating cryptocurrency is understanding how it can be defined. Historically, we’ve seen that cryptocurrencies are mostly speculative assets, sometimes intended to be currencies. That is, the creators of the currencies issue the tokens or coins out with the intention of it being used as a medium of exchange. However, this new invention also has a use case as a speculative asset. This distinction is critical because it informs who is responsible for controlling it.
In many cases, crypto is both a currency and a regulation. If we accept crypto as both a currency and a security, then it would make sense that both the central bank and the securities and exchange regulator would care about how the space develops.
But even after defining what cryptocurrency is, we need to think of what aspect of cryptocurrency should be regulated. Should we regulate the platforms people trade on, or how people use it as a medium of exchange?