MiamiCoin may be the next target for regulators as its rapid descent continues

Miami has made moves over the last year to position itself as a crypto hub, with Miami Mayor Francis Suarez declaring back in 2021 that “The City of Miami believes in #Bitcoin and I’m working day and night to turn Miami into a hub for crypto innovation”. Now, however, MiamiCoin’s possible price collapse may take Miami’s crypto dreams with it.

CityCoins unveiled plans to launch MiamiCoin in September 2021, with mayor Suarez noting at the time:

“When you think about the possibility of being able to run a government without the citizens having to pay taxes. That’s incredible,” Suarez said, adding that the partnership creates a “counternarrative” to the idea that city programs require raising taxes or “private sector philanthropy.”

Since its launch, MiamiCoin has generated $5 million for the city, however Quartz recently published a piece noting how over the last 9 months, MiamiCoin has lost almost all its value and may be targeted by the SEC for “potential wrong-doing”.

An email, obtained by Quartz, reveals an outside press representative for CityCoins, sent an email to Suarez’s chief of staff highlighting some regulatory concerns that the Mayor may need to be aware of:

“We need to get an hour with the Mayor for a comms training session on CityCoins and MiamiCoin. It’s great that he is doing press but he would greatly benefit from an hour session with Patrick on how to best communicate the project. There are a few regulatory wires the Mayor has tripped in recent interviews and it’s really important for the sustainability of the project that he is better prepared. We really care about the Mayor and his role in making MiamiCoin a success—it’s critical that we get time with him as soon as possible.”

The former chief of the SEC’s Office of Internet Enforcement told Quartz that the email is a potential red flag for investigators, who may view this as evidence:

“The SEC could very easily see an email like this, become concerned, open up a formal investigation, and issue subpoenas to everyone as to what’s going on,” he noted.

With the crypto market in chaos, MiamiCoin’s price collapse may be very real. However, the more cynical might view this as an opportunity for the City, and for Suarez to step back from the coin once and for all.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.