Cryptocurrencies are often mistaken for stocks, but this isn’t accurate. Cryptocurrencies, or coins/tokens, are linked with software and belong to a system built on blockchain. They interact, perform functions, and deliver services, but they are not currencies. They are not commodities either. Instead, they act as protocols and create dual-sided marketplaces without the need for a middleman.

Carlotta Perez’s work “Technological Revolutions and Financial Capital” suggests that innovation is at the helm of long-wave economic cycles, and we are now in a new long wave economic cycle, The Age of Autonomy. This new age is driven by new, innovative production capital, such as tokens.

These tokens differ from stocks or bonds as they do not represent a claim on an enterprise’s income or assets. They are unique and distinct assets that facilitate interaction between both parties, much like a factory leverages an assembly line to enhance production.

It is essential to understand the potential risks associated with misguided regulation. An oversimplification of tokens’ nature as securities could hinder their impact in the Age of Autonomy. Fortunately, we have seen progress, such as the district judge ruling that sale of XRP on an open exchange does not fit the category of the sale of a security.

Ultimately, tokens are new and innovative forms of production capital that are pivotal to progress as we march into the Age of Autonomy. They should not be viewed as financial capital and should not be subject to SEC regulation. It is essential to understand their nature and recognize their revolutionary potential in order to harness their real value and impact.