Coinbase calls for new crypto regulator

The challenges that the crypto exchanges are facing could have been avoided if they had listened to the warning from regulators going all the way back to 2008.

Their biggest challenge all along was the lack of transparency of who really owns the exchanges. Here is South Florida where drug money and human tracking thrives, bitcoin has been the top choice to laundry their money. In some cases, they own the bitcoin exchange that later on closed its doors over night without warning because the FBI was closing in on their operations.

Much in the stable coin set-ups speak for that they should meet very similar reegulatory demands as deposit taking institutions have. Should a large part of the stable coin holders request a conversion to "fiat currency" the providers need to manage it. If they start paying interest the similarity with bank account deposit is growing. Holders of the stable coins should enjoy same protections as bank depositors in most mature markets do: Depositor protection by a third party or even by the central bank up to a threshold amount - and subsequently the stable coin operator needs to pay for this depositor protection. This in addition to equity requirements in high quality liquid assets. When used for payments they should adhere to the same regulatory demands as set out in the payments legislation, aml/atf directives, the data privacy rules and open banking requirements other deposit takers and payment institutions adhere to. No need for a "new regulator" or even new rules, all legislation should be tech neutral and no reason for the authorities to have lesser rules on crypto currencies. 

New regulator? LOL.

Crypto / DeFi was supposed to be a separate financial system that was impervious to regulation and censorship. If only the actual product had come close to its GTM story, we wouldn't be talking about *any* regulator for this space, let alone a new and separate regulator. Sigh.