CRYPTO GOES CRUNCH
Last week, all of the doubters who believed cryptoassets were immune to regulatory scrutiny got a rude comeuppance. Although Facebook’s failure to anticipate policy concerns made Libra’s launch one of the most disastrous product appearances in business history, the libertarian inclinations of many crypto acolytes and even companies persuaded them that the only meaningful obstacle to a crypto revolution was ensuring AML compliance. Although Republicans have been considerably more sympathetic to wide-open cryptoassets than Democrats, senior policy-makers on both sides of the aisle are deeply worried about an array of risks – to see why, check out the President’s Working Group report (see Client Report CRYPTO16) on stablecoins issued at the end of the Trump Administration with full concurrence from Janet Yellen.
