Crypto businesses don’t properly safeguard customer assets and often mix them with their own funds. This according to US Securities and Exchange Commission Chair Gary Gensler, who was especially blunt in his assessment of the embattled asset class and its proponents. “This is largely a noncompliant field,” Gensler said in an interview with Bloomberg Television. “They’re commingling customer funds with their businesses.” The negativity from the SEC chief is nothing new. For months he’s been warning of the potential dangers posed by the industry. The regulator has asserted that many tokens and crypto products are really just securities that trade … Continue reading Crypto problems summarised – SEC Chief

The Global Interdependence Center La Jolla, California Thoughts crypto ecosystem on the Crypto Ecosystem Remarks by Christopher J. Waller Member, Board of Governors of the Federal Reserve System February 10, 2023 La Jolla 2023 Crypto ecosystem The latter two parts may facilitate the trading of crypto-assets, but also have much broader applications. He begins with a brief review of concepts which are applicable to other applications: While these technological developments are still in their infancy, they have potential applications beyond the crypto ecosystem that could lead to substantial productivity enhancements in other industries. crypto-assets themselves. The question is, why would … Continue reading Digital Money, Decentralized Finance, and the Puzzle of Crypto

Custodia is a crypto-focused bank from Wyoming and was declined because of nature of balance sheet assets as well as lack of appropriate risk management framework. The Fed in particular called out the potential for their business to support illegal activities and their lack of sufficient risk management. The diligence necessary to satisfy the regulators is significant but there has been no success to my knowledge by any crypto company. They are simply not banks. Reuters Custodia, which is based in Wyoming and is chartered through the state as a special purpose depository institution, lacked a sufficient risk management framework … Continue reading Custodia declined membership of Federal Reserve

A genuine tale of innovative success risks stagnating as global imitators push adoption harder FT confirms my thinking that Open Banking remains a solution looking for a problem. Britain successfully produced an infrastructure solution with common API’s and associated regulatory framework in support. The missing element was and remains the customer. https://on.ft.com/3XYNWR1 HELEN THOMAS It’s surprising really that we don’t hear more about open banking from a government desperate for signs of world-beating regulatory prowess. It is a genuine British success story: the UK pioneered open banking in 2017 (based on a piece of European legislation), after a competition investigation … Continue reading The UK led the world in open banking — and then got left behind

Wells and 3 other banks new wallet to compete with Apple Pay. Some US Banks are pooling resources and planning to offer a Payment Wallet to their customers. The offer is being tied to choice of a participating bank by the customer. First difference to Apple Pay This is the first key difference to Apple Pay – you will see the customer is being directed ti a choice of bank first, and credit card secondarily. The acquisition approach is where the coverage gets murky for me but in fairness is still being worked out. The customer must choose the new … Continue reading Wells and 3 other banks new wallet to compete with Apple Pay

https://on.ft.com/3QSN4ev FT 2023-01-21 “In the moments and days following Musk’s “funding secured” tweet on August 7 2018, Tesla’s stock price was extremely volatile, and fell sharply when it became clear a plan to have Saudi backers fund a go-private effort would not go ahead. The trial in the class action lawsuit, which is expected to last another two weeks, alleges the cost to investors could run into the billions of dollars. Musk described his Twitter account as the most “democratic” way to reach his retail investors, describing that cohort as the most “loyal” supporters of the company.“ — I have … Continue reading Securities law – Musk trial on alleged stock manipulation using Twitter

https://on.ft.com/3QOo5ZP Some terrorist actors have increased operations on Twitter after staff tasked with monitoring this content were sacked, according to a report by Tech Against Terrorism, an initiative that helps companies police content online. The warning comes just two months after Twitter cut its 7,500-strong workforce nearly in half following Elon Musk’s $44bn takeover of the social network. Significant cuts were made to Twitter’s trust and safety teams, which aim to protect users from illegal and harmful content, as part of the restructuring. Continue reading Twitter failures now include encouraging terrorism

Note this is a Government news release verbatim – emphasis and headings added by me for clarity Analysis to follow this announcement . #openbanking Millions of customers benefit as Open Banking reaches milestone The 6 largest banking providers in the UK have implemented fully the standards required by the CMA to deliver Open Banking, helping provide innovative services to millions of account holders, securely. The substantive completion of the Roadmap signals the start of a new phase for Open Banking. Competition and Markets Authority Open Banking was launched in the UK in 2017 as part of a package of improvements … Continue reading Government statement on Open banking mandated roadmap