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Digital Gold or Digital Security? Unravelling the Legal Fabric of Decentralised Digital Assets

Author

Listed:
  • Casey Watters

    (Faculty of Law, Bond University, Gold Coast, QLD 4226, Australia)

Abstract
This paper offers an in-depth exploration into the intricate world of decentralized digital assets (DDAs), shedding light on their categorization as currencies, commodities, or securities. Building on foundational cases such as SEC v. Howey , the analysis delves into the current controversies surrounding assets like XRP and LBC, exploring the nuances in their classification. By highlighting the challenges of defining categories of DDAs within traditional legal frameworks, this study emphasizes the need for a simple taxonomy that encapsulates the dynamism of digital currencies while permitting flexibility. A proposed framework aims to simplify the categorization process while respecting recent jurisprudence, ensuring regulatory clarity for developers and users of DDAs.

Suggested Citation

  • Casey Watters, 2023. "Digital Gold or Digital Security? Unravelling the Legal Fabric of Decentralised Digital Assets," Commodities, MDPI, vol. 2(4), pages 1-12, October.
    • Handle: RePEc:gam:jcommo:v:2:y:2023:i:4:p:20-366:d:1254687
    as

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    References listed on IDEAS

    as
    1. Sisi Zhou & Kuanching Li & Lijun Xiao & Jiahong Cai & Wei Liang & Arcangelo Castiglione, 2023. "A Systematic Review of Consensus Mechanisms in Blockchain," Mathematics, MDPI, vol. 11(10), pages 1-27, May.
    2. Danielle Batista & Ana Lara Mangeth & Isabella Frajhof & Paulo Henrique Alves & Rafael Nasser & Gustavo Robichez & Gil Marcio Silva & Fernando Pellon de Miranda, 2023. "Exploring Blockchain Technology for Chain of Custody Control in Physical Evidence: A Systematic Literature Review," JRFM, MDPI, vol. 16(8), pages 1-20, August.
    3. Muneer M. Alshater & Mayank Joshipura & Rim El Khoury & Nohade Nasrallah, 2023. "Initial Coin Offerings: a Hybrid Empirical Review," Small Business Economics, Springer, vol. 61(3), pages 891-908, October.
    4. Murray A. Rudd, 2023. "Bitcoin Is Full of Surprises," Challenges, MDPI, vol. 14(2), pages 1-14, May.
    5. Elie Kapengut & Bruce Mizrach, 2023. "An Event Study of the Ethereum Transition to Proof-of-Stake," Commodities, MDPI, vol. 2(2), pages 1-15, March.
    6. Muen Uddin & Shitharth Selvarajan & Muath Obaidat & Shams Ul Arfeen & Alaa O. Khadidos & Adil O. Khadidos & Maha Abdelhaq, 2023. "From Hype to Reality: Unveiling the Promises, Challenges and Opportunities of Blockchain in Supply Chain Systems," Sustainability, MDPI, vol. 15(16), pages 1-24, August.
    7. Nishant Sapra & Imlak Shaikh & Ashutosh Dash, 2023. "Impact of Proof of Work (PoW)-Based Blockchain Applications on the Environment: A Systematic Review and Research Agenda," JRFM, MDPI, vol. 16(4), pages 1-29, March.
    8. Aloini, Davide & Benevento, Elisabetta & Stefanini, Alessandro & Zerbino, Pierluigi, 2023. "Transforming healthcare ecosystems through blockchain: Opportunities and capabilities for business process innovation," Technovation, Elsevier, vol. 119(C).
    9. Casey Watters, 2023. "When Criminals Abuse the Blockchain: Establishing Personal Jurisdiction in a Decentralised Environment," Laws, MDPI, vol. 12(2), pages 1-16, April.
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    Cited by:

    1. D. Larry Crumbley & Donald L. Ariail & Amine Khayati, 2023. "How Should Cryptocurrencies Be Defined and Reported? An Exploratory Study of Accounting Professor Opinions," JRFM, MDPI, vol. 17(1), pages 1-18, December.

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