| Senior Fellow at Columbia Richman Center. Accion Opportunity Fund director. Nyca Partners. Academic, business executive, lawyer. |
If policy makers want to stop metastasized crypto trading from causing the next financial crisis, they need to sever crypto trading's connection to our financial system and exclude it from securities and commodities regulation. #crypto #finance #regulation See my OpEd
Crypto trading serves none of the productive purposes that define finance.
It isn’t finance or financial services at all.
It's time to treat it that way.
Policymakers are about to make a catastrophic category error by bringing crypto trading inside regulated financial services.
There is a better alternative.
https://clsbluesky.law.columbia.edu/2022/11/29/lets-stop-treating-crypto-as-if-it-were-finance/
Members of Congress and financial regulators from the Federal Reserve, U.S. Treasury, SEC, CFTC, and CFPB appear set on regulating the crypto trading system (traded coins and associated marketplaces, exchanges, brokerages, lending, staking, derivatives, intermediaries, and enablers) as part of the t...
I will be particularly interested [cue sarcastic voice] to learn how these folks have finally solved the millenium-old maturity mismatch problem inherent in lending long and borrowing short. As far as the website indicates, 30% overcollateralization takes care of it and mortgages are a stable source of liquidity so not to worry! I'm glad that's settled.
I can't take this stuff any more. My head hurts.
Gotta say, I thought I'd seen it all, but this Tellus website is a walking, talking violation of financial economics, law and common sense. Take a look at the landing page and despair.
Despite all the text talking about "deposits", "accounts" and "savings" and comparing the offering to bank deposits, you have to use really good eyesight to discover the tiny little type noting that it is "not a bank." 1/2
