Welcome to another step along the "banking regulation any%" speedrun crypto is going through. Banks (and crypto exchanges are that for all purposes) have stric

Welcome to another step along the "banking regulation any%" speedrun crypto is going through. Banks (and crypto exchanges are that for all purposes) have strict rules on what percentage of customer deposits they have to actually hold and what they can do with the rest. If that fails there is a huge liquidity market, if that fails the fdic (or local equivalent) comes to the rescue and if that fails the central bank (as a lender of last resort) can contain the failure of a single bank. It's far from perfect but history has proven it quite robust. Crypto (in this case) decided that all those rules are useless overreach.