Stakeholders’ perspectives on benefits and challenges in blockchain regulatory frameworks

Abstract

Prior research has indicated that institutional stakeholders influence the elaboration of regulatory frameworks by seeking to maximize their institutional power to achieve favorable policy outcomes. In recent years, Blockchain services regulation has been issued with the aim at influencing the process of technological change and diffusion. Based on stakeholder theory and empirical data collected from key stakeholders, this chapter seeks to contribute to the literature on stakeholder involvement in formulating and enacting regulatory frameworks, understanding the perspectives and needs of different key stakeholders regarding benefits, challenges, and expected outcomes of legislatives initiatives to regulate services based on Blockchain Technology/Distributed Ledger Technology (BCT/DLT). Findings show that the various stakeholders analyzed have competing views and interests in the respective service regulation that ranges from the functioning of BCT/DLT services inside financial markets (financial regulators and government decision makers), to safety, security, and practical risk-management and operational measures for their conducting business (lobbyists and Fintech firms).