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1/ HERE'S AN EXTREMELY DETAILED article re: all the "regulatory theater" in #crypto prime brokerage today. It's prob moot now that at least 1 national bank is entering (so non-bank regulatory structures for crypto r obsolete). @ChrisKentouris @finopsreport
finopsinfo.com/trading/prime-…
2/ I'm SO GLAD native #crypto cos r close to receiving #bank licenses, so the big national banks won't entirely co-opt native crypto cos in US market. Bank licenses are far superior to existing regulatory structures used in US crypto (@APompliano about to release podcast on this)
3/ The @finopsreport article details why a #bank license is superior to trust charter or #BitLicense--banks have much higher capital & reg rqmts, r directly plumbed into Fed, much better bankruptcy treatment for customers, only banks have safe harbor as "qualified custodian"+more
4/ Since @USOCC news came out, had many convos w/ fund managers, RIAs. Those acting in a fiduciary capacity said same thing--as fiduciaries they'd need to switch to the bank. Amazing how much the landscape changed in US since @ChrisKentouris interviewed me 4 this earlier this wk!
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Caitlin Long 🔑
@CaitlinLong_
1/ GAME ON! The @USOCC's announcement that it's following #Wyoming by allowing national banks to custody #digitalassets is GREAT news for #crypto! Long overdue & hopefully will help U.S. regain ground it lost to other developed world countries by dilly-dallying for so long.
2/ Winners=customers & #crypto VCs. This will spur M&A boom as US banks acquire #digitalasset custodians. Most must sell bc:
a. trust co. charters now obsolete &
b. #BitLicense now obsolete 👏

bc @USOCC leapfrogged 'em. Custodians now MUST have a bank charter to be competitive.
3/ But @USOCC didn't leapfrog #Wyoming, bc we already offer a bank charter.🤠

What's the distinction? A bank license was **ALWAYS** the optimal US regulatory structure for crypto custodians--not a trust charter or #BitLicense. Bank charters are SO much better for #crypto custody
Read 25 tweets
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Caitlin Long 🔑
@CaitlinLong_
@AriDavidPaul Hi—only transactions that ACTUALLY happen impact avg fed funds rate. Tx that don’t happen can’t impact it. 2 wks ago, banks prob lent to Deutsche, for ex., albeit at slightly elevated rates. Now, nobody would lend at any rate so those tx, which pvsly lifted the avg, no longer do.
@AriDavidPaul So, when the effective fed funds rate drops it’s not always sign of health. It can be warning sign that some banks are completely shut out of interbank lending mkt. For those banks (the big ones), really the only solutions are equity capital injection or bailout/in 🤬of some form
@AriDavidPaul Ari -- here's more analysis. Lots of fixed income analysts are trying to figure out what's going on here, but it appears one or more big banks may be having funding trouble (this analysis, from a different angle, reaches same conclusion).
Read 3 tweets
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Caitlin Long 🔑
@CaitlinLong_
1/ EPIC DOUG AGAIN TODAY☕️No one deserves a victory lap more than Doug for predicting the carnage from burst credit bubble-but he doesn't. Class act. He focuses on what's next. Reading it makes me proud of #Wyoming for enacting a 100% reserve bank charter.
creditbubblebulletin.blogspot.com/2020/03/weekly…
2/ SORRY NEW YORK, the center of finance in US is about to decentralize to places like #Wyoming (yep🤠), which are already in process of standing up new banks w/ pristine balance sheets, carrying no legacy from prior mess. (Disclosure: I'm working to set up one & so are others.)
3/ NEVER HAS THE NEED for new banks w/ pristine balance sheets been clearer. As Doug points out, bubble finance is OVER. Deleveraging isn't done yet. There's no locomotive in the world to enable re-inflation of the prior bubble (nope, not even China-whose debt bubble also burst).
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