The Crypto Meltdown Could Have Been So Much Worse - The Atlantic - 0 views
-
The only reason we do not currently have a financial crisis, with a crash and with bailouts, is because regulators have withstood enormous pressure to allow interconnection and linkages between the crypto activities and the core of the financial and banking system,” he said. Because of their regulators’ stance, American banks are not collateralizing loans with cryptocurrencies, for instance. They are not freely trading crypto derivatives.
-
Meanwhile, an aversion to U.S. regulation has kept crypto businesses, many of which are based offshore, from getting more deeply involved in American finance. “If you are registered with the SEC and regulated by the SEC, you are required to have segregation of customer accounts,” Kelleher explained. “You’re required to have books and records. You’re required to have codes of conduct that include prohibitions on or identification of conflicts of interest. You’re prohibited from commingling funds. You’re required to have margin capital, and you have liquidity requirements.” Crypto companies “did not want that,”
-
It’s a Ponzi scheme. When there was tulip mania, at least when you lost all your money, you still had a tulip.”