I’m toying with advocating for a three-pronged approach:

1. An annual wealth tax on crypto holdings to fund (a) a victims’ compensation fund and (b) an enforcement agency;

2. Said enforcement agency, whose job is to manage the compensation fund and make referrals to the DoJ (no rulemaking authority); and

3. Reporting requirements for crypto transactions, crypto-fiat or DeFi, above $10k, individually or in aggregate. Civil fines for first time violators. Criminal referrals for repeat, large-scale violators.

Also considering: SEC gets explicit jurisdiction over crypto and FinCEN over DeFi and mining. (I’ve toyed with extending liability to VCs, but that gets messy because it requires defining a crypto start-up, which is harder than defining crypto.)