Historically, the SEC has functioned as a reasonably non-partisan agency, with most rule proposals put forward and adopted by unanimous vote. A trend in partisan voting on regulatory rule proposals has accelerated under the chairmanship of Mr. Gensler, with the majority going forward in 3-2 party line votes. The tension resulting from the party line votes was compounded by the fact that in a good number of situations, the regulatory actions were criticized by the minority Republican…

This is going nowhere.

For whatever reason, the Administration appears bent on killing off digital assets. For all the problems with digital assets, the assertion that they are a threat to the real economy seems overdone. Digital assets just lost at least two thirds of their value and it didn't impact the real economy (see FRB Governor Waller’s , which touch on the "lack of spillovers" to the rest of the financial industry). Regulated financial institutions are not speculating or…

The proposed changes are very significant. They will likely prove very expensive and cumbersome to implement. In fact, the difficulty of implementing the rules may restrict the range of products, even securities products, in which advisers registered with the SEC may invest for their clients. To take one example, the indemnification provision that investment advisers are required to obtain from their clients may be quite difficult for advisers to obtain, limiting the ability of advisers to…

Apparently, the researcher is saying that digital assets do not pose a risk to traditional financial markets, but if things were totally different, maybe they would. That is hard to dispute. That said, it is hard to give credence to the worry that any investment by banks in the "digital-asset space" poses a risk to the bank system, given that U.S. banks cannot buy digital assets for investment or speculative purposes. Further, the U.S. government already monitors bank involvement in digital…