Reporting by Quartz suggests that Mayor Francis Suarez of Miami may have “tripped” regulatory wires during interviews in support of MiamiCoin. The cryptocurrency is a city-specific virtual currency created by CityCoins, and is designed to provide free money to cities.

Why should we care?
Suarez’s office received an email from Kara Miley, a press representative for City Coins, warning that “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.” According to John Reed Stark, a former chief of the Office of Internet Enforcement at the SEC, “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.” If that happens and the SEC concludes that MiamiCoin is an unregistered security, then CityCoins and the Miami city government may be forced to return investors’ money. It could also hold individuals within those organizaitons liable for making false claims. For WIRED, The FR’s lead reporter, Adam Willems, argued that MiamiCoin is an attempt to turn taxes into another investment vehicle; Quartz’s scoop suggests the SEC agrees, and might prevent such a taxation system from taking shape and spreading to other cities. What’s more, MiamiCoin has lost 95% of its value since it launched in August 2021. Other pro-crypto mayors like New York’s Eric Adams had previously evangelized the CityCoins project, but have been mum in recent months. The dual prospects of regulatory interference and losing money are probably the cause, and may prevent CityCoins from minting other city-specific coins in the coming months.