Regulation maze
It's rare to hear calls for more regulation and rarer for it to come from challengers to an industry. But both smaller banks and crypto traders want to hear more from the regulators.
Beyond being disrupters, smaller banks and crypto traders might not seem especially like-minded. But there's one area where they have a lot of common ground: regulation.
Both groups want greater clarity around who is regulating what and when it is being regulated.
For crypto bros, and digital asset platform providers more broadly, clear guidelines and ideally draft legislation are vital for strategic planning and investment. As we’ve been reporting, the lack of movement on even a framework is frustrating many in the industry.
Smaller banks have a somewhat different problem. They pretty well know their regulators and their broad scope — but there's a mob of regulators who change the rules and don’t coordinate. As Mike Lawrence, CEO of the small bank lobby group the Customer Owned Banking Association (COBA), says, the issue has been dealing with multiple regulators with overlapping agendas who have a proportionally greater impact on smaller institutions.
