Bitcoin bingo: shaking up financial stability, one game at a time.

TLDR:

– Bitcoin reached $52,000, highlighting the double standard in financial regulation in the U.S.

– Non-bank financial companies engaging in bank-like activities are barely regulated, posing threats to financial stability.

This article discusses the erosion of financial stability due to the lack of regulation of non-bank financial companies, using Bitcoin as a prime example. The author emphasizes the asymmetrical regulation in the U.S. financial system, where banks are heavily regulated while non-bank financial companies engaging in similar activities receive minimal oversight. Bitcoin, in particular, poses threats to financial stability as it operates without government intervention and is utilized by online criminals and terrorists.

The article suggests revising the current financial regulatory system by consolidating regulatory roles into a single financial services commission, involving private companies in financial regulation, developing a new concept of federal deposit insurance, and establishing a bipartisan Joint Financial Services Committee. These proposed changes aim to enhance oversight, prevent future financial collapses, and ensure a more stable financial system in the face of emerging technologies like Bitcoin. Ultimately, the article highlights the importance of updating current regulations to adapt to the evolving financial landscape.