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Yep. At banks it has slowly gotten particularly bad since lately EU EBA had to issue guidance on how to tackle 'regulatory expectations and[..] unwarranted deri

Yep. At banks it has slowly gotten particularly bad since lately EU EBA had to issue guidance on how to tackle 'regulatory expectations and[..] unwarranted derisking'. US Treasury did not offer a guideline yet, but one of its higher up recently had a speech that touched on it too. This is what happens when your system is not dumb pipes and can be massaged based on who is currently doing the bossing part. And this is why I roll my eyes at anyone who tells me 'just do it yourself'. Do what at this point? Roll foundational infrastructure that should be dumb pipes? Coffee did not kick in yet, but the game is rigged and whatever ideals existed with the emergence of early internet have been gone for a long time now. We are just seeing some of its more visible effects.

kyrra 4y ago
And more concrete example for the banking system is a recent bank failures. The Fed and FDIC have effectively given notice to the banking system that crypto is disfavored. See: https://finance.yahoo.com/news/signatures-seized-assets-sold-without-105833351.html https://finance.yahoo.com/news/signatures-seized-assets-sold... > FDIC had told potential bidders that "any buyer of Signature must agree to give up all the crypto business at the bank." And one of the members of Signature Banks board also claimed the FDIC shut them down without the bank being insolvent. See: https://www.wsj.com/articles/signature-bank-new-york-community-bancorp-flagstar-bank-crypto-barney-frank-fdic-9b825e2e https://www.wsj.com/articles/signature-bank-new-york-communi... You can bet banks will be avoiding crypto.
- brookst 4y ago
  I’m not sure it’s surprising or undesirable for heavily regulated banks that rely on government support in both good and bad times are avoiding a highly speculative and unregulated asset class that has a history of ponzu schemes and other frauds.

kyrra 4y ago

And more concrete example for the banking system is a recent bank failures. The Fed and FDIC have effectively given notice to the banking system that crypto is disfavored. See: https://finance.yahoo.com/news/signatures-seized-assets-sold-without-105833351.html https://finance.yahoo.com/news/signatures-seized-assets-sold... > FDIC had told potential bidders that "any buyer of Signature must agree to give up all the crypto business at the bank." And one of the members of Signature Banks board also claimed the FDIC shut them down without the bank being insolvent. See: https://www.wsj.com/articles/signature-bank-new-york-community-bancorp-flagstar-bank-crypto-barney-frank-fdic-9b825e2e https://www.wsj.com/articles/signature-bank-new-york-communi... You can bet banks will be avoiding crypto.

brookst 4y ago
I’m not sure it’s surprising or undesirable for heavily regulated banks that rely on government support in both good and bad times are avoiding a highly speculative and unregulated asset class that has a history of ponzu schemes and other frauds.