Rulemaking is an arduous task. Oftentimes, the words in a gazette take a form of their own in the real world, diverging from the intent. This can be particularly challenging in the case of emerging technologies, where change is rapid and constant.
Consider the infamous Red Flag Act the United Kingdom introduced at the advent of motorcars. It mandated that every motorcar had to have three “drivers”: one at the wheel, the second, a fellow passenger, and the third, on foot, holding a red flag to alert oncoming horse-drawn carriages. Ostensibly established in the interest of safety, the Act only ended up strengthening the motorcar industry elsewhere in Europe. It was ultimately repealed in 1896, clearing the path for the golden era of the British motorcar industry and icons such as Rolls-Royce.
Editorial | Belated, but essential: On bringing all trade in virtual digital assets under the PMLA
