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The regulations for handling securities are through a brokerage. This is a HUGE deal because handling crypto through a brokerage would basically neuter it. Ima
by legitster 3y ago
The regulations for handling securities are through a brokerage. This is a HUGE deal because handling crypto through a brokerage would basically neuter it.
Imagine trying to buy a pizza with Bitcoin, but you have to go into your Charles Schwab account and wait 3 days for the Bitcoin transaction to settle. In a brokerage system you would get the ownership stake aspect of crypto, but none of the transactional ones.
- vorpalhex 3y agoThe settlement time on stocks is minutes. There is no requirement that brokerages are slow to settle. That is your brokerage choosing to be risk adverse.
- legitster 3y agoThe requirements are set by the SEC: https://www.sec.gov/about/reports-publications/investor-publications/about-settling-trades-in-three-days-introducing-t-3 https://www.sec.gov/about/reports-publications/investor-publ...
- vorpalhex 3y agoI'm going to repeat myself. There is no requirement that brokerages are slow to settle. There is a requirement - the one you linked - that a brokerage may not take MORE than three days. It does not require them to take three days. A brokerage can settle as fast as it can.
- afterburner 3y ago> This is a HUGE deal because handling crypto through a brokerage would basically neuter it. Nah, it's still an equity. People don't buy pizza with their Microsoft stock, but they still buy Microsoft stock. Even crypto fanatics use Venmo.