Thru the years we have trusted the banks and credit unions to accept our dollars and safely store them for our future use. One the majors factors in developing this trust was the FDIC.
In 1933, as part of President Franklin Delano Roosevelt’s ”New Deal,” the Banking Act of 1933 established the FDIC.
Bank runs still exist, but this promise to protect your deposits has calmed many storms and all but eliminated the rush to pull your money from bank custody due to rumor or actual losses.
To those that participate in the crypto community, does this seem familiar? Someone says something on twitter and the next day everyone is lined up to self custody their coin. Then an exchange stops all traffic due to the congestion of super high traffic. (or a sovereign orders the exchange to stop operating under the threat of violence)
As the owners sweat out the delay, they investigate every avenue to recover their coin.
I will not recommend you leave your coin on an exchange. But, you can leave your fiat in a bank if you can withstand the inflation pressure. As to crypto currency, my opinion is to self custody any assets that you are not actively trading or staking. If you have not explored this option, then what are you waiting for?
As I write this, I have paused for over 2 weeks to watch the SBF debacle play out. This real life drama of greed and theft and loss of assets should be a turning point for all the blockchain community. I believe it will affect all new regulation that comes from Washington. It may not play out like you would want, so what are your options at this point?
Some in Congress will pass the buck to the CFTC or the SEC. But will this solve any problems for offshore exchanges?
The result of these new regulations; I believe it will only restrict access for the American Citizen as the norm today seems to be “I’m from the government, and I’d here to help you”.
