1) can be coded by anyone, vs expensive lawyer 2) can be diligenced & used by anyone in any country 3) can be deployed in minutes, vs days to incorporate 4) blockchain enforces payouts, not legal system
As different as website & printed book.
Btw, hedge funds don’t “hedge their bets against one another”. The name is a legacy and many are actually high-risk vehicles.
It’s one thing for these people to know nothing about anything. It’s another to *not know how little they know*. And then to be snide about it!
Today showed us that the SEC has had it wrong. The problem isn’t that some cryptos may be securities. The problem is that all securities aren’t yet cryptos.
Now is the time to draft a bill that legalizes security tokens.
If all securities were represented on-chain:
- all users have self-custody of certificates
- brokerages can’t stop you from trading
- trading runs 24/7
- and settlement happens in minutes, not days
Basically, root cause is the antiquated financial backend. On-chain fixes this.
The stockchain
What we just observed was a technology problem that is being cast as a human problem. It was basically a Slashdotting of the legacy financial system, an unexpected workload that it isn’t prepared to handle. Putting stocks on chain really does fix this.
We don’t know all the facts yet. It is quite possible Robinhood was leaned on by the SEC, a banking partner, or one of many other regulators / regulated entities they are beholden to.
We’re seeing the limits of fintech vs crypto in real-time. Not your rails, not your stocks.
OK, here *may* be why Robinhood & other brokerages shut down trading.
Not because evil. Because they can't afford the cost!
Due to the volatility of these stocks, their partners now (understandably) want cash up front. No one wants to be holding the bag. finance.yahoo.com/video/heres-wh…
This is plausible to me & similar to the kinds of thing that happen in crypto when there is an unexpected surge in price.
If true, it's a supply chain issue due to slow settlement times. No one wants to take principal risk on a ton of highly volatile assets.
I expect a pseudonymous founder to set up a contract-for-difference engine in some country. Maybe legal in some places, do your own diligence!
But that would allow *uncensorable* on-chain exposure to the price of every stock.
Basically, the way MakerDAO works is by putting the exchange rate of ETH/USD on chain. Through some transformations, that gets you a USD stablecoin called DAI.
But the same approach can be used to put ETH/GME, ETH/TESLA, ETH/ANYSTOCK on chain.
☀️ The city of Miami just posted the #Bitcoin whitepaper on their website! This is a simple but powerful move that any jurisdiction can make to show they are in favor of technological progress. Who will follow Miami's example?
Here is Representative @PatrickMcHenry of the House Financial Services Committee standing up for open source innovation in finance by posting the Bitcoin whitepaper!