In December 2020, the SEC on a proposal allowing limited purpose broker-dealers to custody digital asset securities. The proposal was so restrictive as to be unworkable; it would not have allowed the limited purpose broker-dealers to custody cryptocurrencies. The SEC's proposed accounting treatment for the custody of digital assets entirely puts the kibosh to that proposal, as the capital charges associated with the SEC's treatment of custody by a broker-dealer would make it impossibly…

It certainly seems that the FRB is laying the groundwork for a U.S. CBDC and very likely for legislation that requires that dollar-backed stablecoins may be issued only by regulated banks.

It is possible that part of the reason that cryptocurrencies are prone to hype is that the SEC and other financial regulators have chosen not to provide a modified regulatory scheme, , for digital assets. (See also .) In the absence of a modified workable regulatory scheme, the creators of both viable and fraudulent projects take their chances going unregulated. If the SEC were willing to propose a disclosure scheme that allowed cryptocurrencies to go to market under a lightened regulatory…

The SEC is proposing new rules at an unprecedented rate. As to many of these rules, there is far from a consensus that they provide any material benefit, and certainly not a benefit proportionate to their costs. Before seeking more money from Congress, the SEC ought to (i) establish some priorities as to its own expenditures, (ii) establish some priority as to any new rule proposals, (iii) consider whether there are any existing rules that ought to be done away with or reduced in burden and…