ASIC: Regulate crypto by economic function, not technology

ASIC’s Rhys Bollen says crypto should be regulated by economic function, not technology, urging the use of existing financial laws instead of creating crypto-specific rules.

Rhys Bollen of the Australian Securities and Investments Commission (ASIC) argues that blockchain and cryptocurrency technologies should not be treated as separate asset classes in financial regulation. He believes they serve the same economic functions as existing financial infrastructure. Speaking at the Melbourne Money & Finance Conference, Bollen emphasized that regulation should focus on the economic substance of crypto-assets rather than their technological form. He suggested that tokenized securities be regulated under securities laws, stablecoins under payment services legislation, and other crypto elements under consumer protection laws. Bollen highlighted that most consumer harm in crypto arises from platforms rather than the tokens themselves. He cautioned that creating crypto-specific laws could lead to regulatory gaps and advocated for adapting existing financial laws to cover blockchain-based services, viewing blockchain as new infrastructure rather than a fundamentally different asset class.