šØ Trumpās integration of radical cryptocurrency with mainstream finance⦠the result?
Coinbase CEO, who was sued by the SEC a year ago, is now sitting in the White House VIP room. This is the reality.
Looking at the scale of the change being pursued by the Trump administration, it gives me goosebumps beyond shock. It is considering removing restrictions on cryptocurrency investment from the 401 (k) retirement pension, recognizing Bitcoin as cash when reviewing mortgage loans, and even trading Apple and Tesla shares on the blockchain 24 hours a day.
ā ļø The key is the possibility of systemic risk.
Like the FTX crisis in the past, even if cryptocurrencies crashed, the market was able to withstand it independently without leading to a shock to the real economy. This was possible because it was separate from traditional finance.
But itās different now. If everything is linked to cryptocurrency, from bank loans to retirement pensions pushed by the Trump administration, a domino effect is inevitable in the next crisis.
Duke University is now describing the crypto industryās radical integration into mainstream finance as āall safeguards are being removed at once.ā ā ļø
šÆ Stablecoin policy is the riskiest gamble. The U.S. is fostering stablecoins to maintain dollar hegemony, while at the same time creating a double-edged sword that could weaken the Fedās monetary policy effect.
š In conclusion, this is the most radical financial restructuring that runs counter to the Glass-Stegal Act, a financial regulation package pushed through bone-shattering pain after the Great Depression of 1933. Perhaps this crypto party is raising the huge systemic risks that future generations face together.
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