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The Fed absolutely has regulatory authority over a pretty big piece of the banking system much the same way the SEC has authority over the investment industry.[

The Fed absolutely has regulatory authority over a pretty big piece of the banking system much the same way the SEC has authority over the investment industry.[1] But more importantly, the Fed has leverage over most of the financial system: any institution that wants acccess to the discount window is going to have to do what the Fed says. And if they all have to comply, their clients will have to, too. OCC, FDIC, and the Fed also work closely with one another. Police force or not, if you want to be a bank you’re going to have to comply with their requirements. Edit- More info about the Fed’s supervisory authority here: https://www.federalreserve.gov/supervisionreg/enforcement-actions-about.htm https://www.federalreserve.gov/supervisionreg/enforcement-ac... [1]Fed enforcement actions: https://www.federalreserve.gov/supervisionreg/enforcementactions.htm https://www.federalreserve.gov/supervisionreg/enforcementact...

narrator 5y ago
I don't think Dogecoin is scared of losing access to the discount window! They are more like a public utility that is private, but has some amount of government oversight. Controlling the ability to create money is pretty impressive and they can cut people off from that, so that is a lot of power. They can't arrest people or criminally charge people like the SEC can though.
- elliekelly 5y ago
  No, but they’re scared of losing access to wire transfers. Or at least they should be. So if the Fed tells banks they can’t transact with or accept proceeds from the sale of Dogecoin they will cease transacting with and accepting proceeds that appear to be from the sale of Dogecoin. And then Doge will be well and truly fucked. You can’t get to the moon if you can’t get any money. And for the record, the SEC can’t arrest or bring criminal charges, either. They’re civil enforcement only.

narrator 5y ago

I don't think Dogecoin is scared of losing access to the discount window! They are more like a public utility that is private, but has some amount of government oversight. Controlling the ability to create money is pretty impressive and they can cut people off from that, so that is a lot of power. They can't arrest people or criminally charge people like the SEC can though.

elliekelly 5y ago
No, but they’re scared of losing access to wire transfers. Or at least they should be. So if the Fed tells banks they can’t transact with or accept proceeds from the sale of Dogecoin they will cease transacting with and accepting proceeds that appear to be from the sale of Dogecoin. And then Doge will be well and truly fucked. You can’t get to the moon if you can’t get any money. And for the record, the SEC can’t arrest or bring criminal charges, either. They’re civil enforcement only.