We just lived through most consequential 24 hours in financial services law for the past two decades.
And it will bring the biggest transformation of financial technology since the 1970s.
Here's what happened and why it matters 👇
And it will bring the biggest transformation of financial technology since the 1970s.
Here's what happened and why it matters 👇
What Happened? 🤔
1. The GENIUS Act passed with a 308-122 bi-partisan vote in the House and is heading to the Presidents desk.
2. The CLARITY Act, clarifying SEC vs CFTC oversight passed House 294-133
3. Anti-CBDC Bill, prohibiting a retail CBDC also passed the house.
1. The GENIUS Act passed with a 308-122 bi-partisan vote in the House and is heading to the Presidents desk.
2. The CLARITY Act, clarifying SEC vs CFTC oversight passed House 294-133
3. Anti-CBDC Bill, prohibiting a retail CBDC also passed the house.
The last major bill was Dodd-Frank in 2010 which among other things:
1. Created capital requirements on banks - arguably making them less profitable
2. Carved out smaller banks (Sub $10bn in assets) to have less stringent oversight and make more from even swipe fee.
1. Created capital requirements on banks - arguably making them less profitable
2. Carved out smaller banks (Sub $10bn in assets) to have less stringent oversight and make more from even swipe fee.
Stablecoins have gone from risky to mainstream
The GENIUS Act,
--> Creates an entirely new category of financial institution
--> Makes US Dollar backed stablecoins a regulated, on shore asset
--> This will unleash adoption by banks and major Fortune 500s
The GENIUS Act,
--> Creates an entirely new category of financial institution
--> Makes US Dollar backed stablecoins a regulated, on shore asset
--> This will unleash adoption by banks and major Fortune 500s
The CLARITY Act,
--> Separates what is and is not a security
--> Stemming from a grey area where "token launches" would be sued by the SEC without that clarity
-->This led to failures in the court system and a lack of consumer protection
This paves the way for tokenized securities
--> Separates what is and is not a security
--> Stemming from a grey area where "token launches" would be sued by the SEC without that clarity
-->This led to failures in the court system and a lack of consumer protection
This paves the way for tokenized securities
The CEO of Robinhood @vladtenev said the quiet part out loud to @HarryStebbings
- This is the biggest shift in finance since digitization in the 1970s.
- We're changing how assets are stored and how they move
- With cash and stablecoins
- With equities and tokenization
- This is the biggest shift in finance since digitization in the 1970s.
- We're changing how assets are stored and how they move
- With cash and stablecoins
- With equities and tokenization
When we "wrap" assets in this new technology they get superpowers
They become
- Default Global
- Default instant / 24/7
- Default programmable
Vs the locked and closed systems we have today
They become
- Default Global
- Default instant / 24/7
- Default programmable
Vs the locked and closed systems we have today
In the past week we saw JP Morgan, BofA and Citi hint at their stablecoin / tokenization plays.
The banks aren't sleeping on this.
They recognize the threat AND the opportunity.
Do you?
The banks aren't sleeping on this.
They recognize the threat AND the opportunity.
Do you?
If you want to stay up to date on the Tokenization of everything, check out the @TokenizedPod
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