> If we wanted to remove leverage we could sign a law to remove it tomorrow. The kind of unsafe leveraged bundling that caused the great financial crisis was a

> If we wanted to remove leverage we could sign a law to remove it tomorrow. The kind of unsafe leveraged bundling that caused the great financial crisis was already illegal. In theory, the banks should have suffered the consequences of their poor trades. In practice, both the banks and the government knew that by enforcing those consequences, the entire financial system as we knew it would fall apart. So the banks smartly factored the bailouts into their risk calculations when entering into those trades. Crypto enables systems that cannot be as easily bailed out. It changes the game theory so that failure is no longer a "get bailout and still win" condition for speculative lenders. So in a way, crypto absolutely does create "ways to make breaches of trust cost more."