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central bank / CBDCCryptodecentralized financeopen sourcephilosophyregulation & compliancestablecoins
·Dec. 21, 2020

Crypto regulatory wargames with FinCen, FCA, and the US House of Reps, impacting Paxos, Compound, BBVA, and Northern Trust

This week, we look at:

  • Proposed US regulation from FinCEN, legislation from the House of Representatives, and UK FCA registration requirements that would impact the crypto industry

  • The difference between competition for share within an established market, and competition between market paradigms (think MSFT vs. open source, finance vs. DeFi)

  • The crypto custodian moves from BBVA, Standard Charters, and Northern Trust

  • The bank license moves from Paxos and BitPay, as well as the planned launch of a new chain by Compound, in the context of the framework above

Permissionless finance is a paradigm breach. It pays no regard for the very nature of the incumbent financial market. Without banking, it creates its own banks. Without a sovereign, it bestows law on mathematics and consensus. Without broker/dealers, it creates decentralized robots. And so on. It tilts the world in such a way as to render the economic power of the incumbent financial market less important. Not powerless -- the allure of institutional capital is a constant glimmer of greedy, opportunistic hope. But the hierarchy of traditional finance does not extend to DeFi, and thus has to be re-battled for the incumbent. This is cost, and annoying.

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FintechNews RoundupUSA
·May. 29, 2020

Failure to Launch a Digital Currency Could Cost the USD Status as World’s Reserve Currency

The Digital Dollar Project is a group headed by Christopher Giancarlo, the former head of the Commodity Futures Trading Commission...
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FintechNews RoundupUSA
·Jan. 17, 2020

Former CFTC Officials Create a Digital Currency Think Tank

Christopher Giancarlo, the former head of the Commodity Futures Trading Commission, is creating the Digital Dollar Foundation to study converting...
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FintechNews RoundupUSA
·Feb. 7, 2018

US Regulators Says they May Need Congressional Help on Crypto Regulation

Testifying before the Senate Banking Committee, the heads of the SEC and CFTC said they are keeping an eye on the market but might need help from Congress; “We should all come together, the federal banking regulators, CFTC, the SEC — there are states involved as well — and have a coordinated plan for dealing with virtual currency trading markets,” SEC Chairman Jay Clayton as reported by American Banker; CFTC Chairman Christopher Giancarlo said the technology behind cryptocurrencies should be considered differently that the currencies themselves; they also noted they are talking with global counterparts to learn their views on the market. Source.

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FintechNews RoundupUSA
·Dec. 7, 2017

Big Banks Express Concern Over Bitcoin Futures

The Futures Industry Association, the main futures industry group, is sending a letter to the CFTC expressing concerns over bitcoin futures; the FT saw a draft of the letter and it states that they did not allow for proper public transparency and input; futures brokers are concerned over holding more risk and have expressed concerns to the FT that they will not immediately clear the products. Source.

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Asia/PacEuropeFintechNews RoundupUSA
·Jul. 10, 2020

More News for July 10, 2020

Transferwise CEO Taavet Hinrikus and LocalGloabe back DeFi start-up Radix in $4.1m fundraise Railsbank continues global expansion and launches in...
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FintechNews Roundup
·Feb. 24, 2020

Former CFTC Chairman Says Fed Should Introduce a Digital Currency

Christopher Giancarlo, the former chairman at the Commodity Futures Trading Commission, said at a recent forum that the Federal Reserve...
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FintechNews RoundupUSA
·Jun. 26, 2019

Traders Bet that Bitcoin’s Resurgence Will be Short Lived

According to a recent report from the Commodity Futures Trading Commission hedge funds and other money managers held about 14...
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FintechNews RoundupUSA
·Jan. 25, 2018

CFTC and SEC Share Thoughts on Cryptocurrencies in Op-Ed

Mr. Clayton is chairman of the Securities and Exchange Commission and Mr. Giancarlo is chairman of the Commodity Futures Trading Commission; in a Wall Street Journal article they share their perspective on regulation as it relates to cryptocurrencies; they discuss trading, listed bitcoin futures products, ICOs and more. Source

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FintechNews RoundupUSA
·Nov. 8, 2017

Chicago Board Options Exchange Endorses Cryptocurrencies

The cryptocurrency space is a space we believe in,” CBOE’s chief operating officer told analysts in a call on Tuesday according to the FT; they also noted that the CBOE is in talks with the CFTC to offer futures on bitcoin; this move follows what the CME said last week that it planned to add bitcoin as well. Source.

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