|
|
While the New York Department of Financial Services (NYDFS) has responded by stating that the decision to take over Signature Bank is not targeted at the cryptocurrency industry, on the other hand, the FDIC is requiring potential buyers of Signature Bank to agree to relinquish the bank's cryptocurrency business. Such inconsistency is indeed hard to believe.
In response to Tom Emmer's post, Cathie Wood pointed out that the FDIC and other regulatory agencies are preventing the United States from participating in the most crucial phase of the internet revolution:
"In our view, cryptocurrencies represent a solution to the failures, opacity, and regulatory mistakes of the traditional financial system. If cryptocurrencies become scapegoats for policy mistakes, many businesses will be forced to move overseas, depriving the United States of one of the most important innovations in its history."
She wrote: "In a decentralized, transparent, auditable, and over-collateralized ecosystem of crypto assets, such a collapse is impossible. In fact, just last week, cryptocurrencies acted as a safe haven: like gold, their prices were rising."
Cathie Wood pointed out that while the US banking system was paralyzed by regional bank runs, Bitcoin, Ethereum, and other cryptocurrency networks were operating normally. She believes that regulatory agencies should focus on the signs of an imminent collapse in the traditional banking system rather than trying to block decentralized financial platforms.
She believes that because short-term interest rates have surged 19-fold within a year, leading to mismatches between assets and liabilities, coupled with a decline in deposits in the banking system, there are clear signs of a potential crisis that could have been successfully navigated if detected early. However, regulatory agencies are only concerned with blocking decentralized financial platforms. |
|
Post time 20-2-2024 12:43:43
