BitGo CEO Mike Belshe Warns: Exchanges, brokers, and custodians all belong to the same house.
According to The Block, his conclusion is: the Clarity Act failed to take effect, leaving the U.S. market exposed to systemic risk.
There’s only one mechanism: when a broker fails, another one replaces it; when an exchange that holds customers’ assets in custody fails, the entire chain breaks.
He says this is a risk even Lehman Brothers didn’t have.
Unless the Clarity Act is pushed forward again, or regulators split these three types of businesses, this assessment is invalid.
According to The Block, his conclusion is: the Clarity Act failed to take effect, leaving the U.S. market exposed to systemic risk.
There’s only one mechanism: when a broker fails, another one replaces it; when an exchange that holds customers’ assets in custody fails, the entire chain breaks.
He says this is a risk even Lehman Brothers didn’t have.
Unless the Clarity Act is pushed forward again, or regulators split these three types of businesses, this assessment is invalid.
