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We enacted Glass–Steagal specifically for reasons like this correct? I can't believe I didn't see this sooner. I wonder if Coinbase will have to divest GDAX on
by ryanmarsh 9y ago
We enacted Glass–Steagal specifically for reasons like this correct?
I can't believe I didn't see this sooner. I wonder if Coinbase will have to divest GDAX once regulation catches up.
- dmurray 9y ago> We enacted Glass–Steagal specifically for reasons like this correct? Not really. Glass-Steagall separated investment banks from commercial banks. There is approximately no one fulfilling the role of commercial bank in bitcoin - no one taking bitcoin deposits and using them to underwrite bitcoin mortgages. Generally exchanges, trading firms and brokers do not have to be separate in the US financial system. For example CME, the largest futures exchange, owns a small trading firm called GFX. IEX operates as both an exchange and a broker.
- Animats 9y agoYes, and it was repealed in the 1990s. That's why we had the 2008 crash. The basic idea of Glass-Stegall was that stock market crashes wouldn't affect banks. This worked well for half a century. Then came "deregulation". With the coming repeal of Sarbanes-Oxley, expect a big crash in a few years.