Blockchain Neutrality

Blockchain technology is transforming how markets work.Blockchains eliminate the need for trusted gatekeepers likebanks to execute, verify, and record transactions. In thefinancial markets, their disruptive potential threatens bothWall Street banks and Silicon Valley venture capitalists. Howblockchain technology is regulated will determine whether itencourages or inhibits competition. Some blockchainapplications present serious fraud and systemic risks,complicating regulation.

This Article explores the antitrust andcompetition policy challenges blockchain presents and proposesa regulatory strategy, modeled on Internet regulation and netneutrality principles, to unlock blockchain’s competitivepotential. It contends that financial regulators should promoteblockchain competition—and the resulting marketdecentralization—except in cases where specific applicationsare shown to harm consumers or threaten systemic safety.Regulators also should ensure open access and non-discrimination on dominant blockchain networks. Thisapproach will not only serve traditional antitrust goals oflowering prices and promoting innovation, but it also mightachieve broader economic and social reform by reducing thepower and influence of the biggest financial institutions.