An Exercise in Utility (Tokens): Global Securities Regulation of Cryptoassets

Abstract Cryptoassets, while viewed by many as a significant innovation in the banking and investment industry, present exigent risks to investors, markets and possibly the financial system itself. Can these risks be managed appropriately using securities regulation? This article argues that securities regulation is appropriate to regulate a popular kind of cryptoasset, utility tokens, given the similarities between utility token risks and those found in traditional securities markets. This analysis begins to point to a consistent global regulatory response to cryptoasset regulation and has implications for future cryptoassets and financial innovation more generally.