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This chapter examines the insider–outsider dynamics shaping Web3 technologies as they navigate entrepreneurial ecosystems and the technology diffusion process. It establishes insiders as the developers, founders, and investor communities driving Web3 innovation, often operating in regulatory grey zones with a techno-solutionist mindset. In contrast, outsiders include institutions, policymakers, and the broader public reacting to Web3’s experimental nature and socio-technical novelty. The chapter situates Web3 within frameworks of technology adoption, socio-technical imaginaries, and models of diffusion. It highlights the tendency of insiders to overlook social nuances while pursuing rapid commercialisation and adoption. The chapter presents two case studies: the first examines the regulatory friction encountered by Ripple Labs and its digital asset, XRP; the second chronicles the rise and fall of Art NFTs, from their promise of empowering artists to their eventual decline due to legal uncertainties, environmental concerns, scams, and clashing community values. This decline mapped onto public disillusionment with the technology despite, and perhaps because of, its utopian techno-libertarian premise. The chapter argues that Web3 must navigate complex insider–outsider tensions while introducing disruptive innovations within existing socioeconomic structures. It concludes with policy recommendations spanning regulatory frameworks, consumer protection, responsible innovation, and public education to foster a more balanced and sustainable Web3 ecosystem.

This paper aims to examine the impact of enforcement actions by the US Securities and Exchange Commission (SEC) on the valuation of major crypto assets.

Given the recent increase in regulatory efforts to combat fraudulent activity within the market, the paper concentrates on the period from 2019 to 2023 and uses the event study approach.

The analysis reveals a negative and economically significant effect of SEC actions on crypto valuations, ranging from −0.7% to −1.4% over a three-day window surrounding the announcement of enforcement actions for the entire sample. Particularly, a pronounced negative reaction is observed from crypto investors to SEC enforcement actions in 2022 and those where individuals are charged.

The findings align with existing literature, even though the study uses more conservative methodological approaches and data selection criteria. Specifically, the author uses a market event study model, account for potential confounding events, and use initial news reports about investigations rather than official SEC communications as event dates.

Free banking theory, as developed in Adam Smith’s 1776 treatise, “The Wealth of Nations” is a useful tool in determining the extent to which the “invisible hand of the market” should prevail in regulatory policy. The purpose of this study is to provide a timely review of the literature, evaluating the theory’s relevance to regulation of financial technology generally and cryptocurrencies (cryptos) specifically.

The methodology is qualitative, applying free banking theory as developed in the literature to technology-defined environments. Recent legislative developments in the regulation of cryptocurrencies in the UK, European Union and the USA, are drawn upon.

Participants in volatile cryptocurrency markets should bear the consequences of inadvisable investments in accordance with free banking theory. The decentralised nature of cryptocurrencies and the exchanges on which these are traded militate against coordinated oversight by central banks, supporting a qualified free banking approach. Differences regarding statutory definitions of cryptos as units of exchange, tokens or investment securities and the propensity of these to transition between categories across the business cycle render attempts at concerted classification at the international level problematic. Prevention of criminality through extension of Suspicious Activity Reporting to exchanges and intermediaries should be the principal objective of policymakers, rather than definitions of evolving products that risk stifling technological innovation.

The study proposes that instead of a traditional regulatory approach to cryptos, which emphasises holders’ safety and compensation, a free banking approach combined with a focus on criminality would be a more effective and pragmatic way forward.

In recent years, new and technologically innovative financial products and services, generally subsumed under the fintech umbrella, have permeated all areas of capital markets at an exponential rate. Primarily driven by developments in Web3 and advancements in artificial intelligence (AI), fintech solutions offer valuable benefits to all existing markets and participants and are the basis for introducing wholly new segments to classic capital market ecosystems. However, this increasing fintech adaptation does not come without challenges. Due to the technologies' nascent nature and often unregulated status, many products are susceptible to manipulation and fraud. The result can be sizable investor losses and excessive regulatory and public scrutiny. This chapter highlights the most essential and prominent fintech solutions used in capital markets today, along with their features, value additiveness, and degree of adaptation.