Regulators seem to believe that central clearing eliminates risk. In many cases, it simply moves risk, and it may even increase it. The fact that CCPs can always demand margin means that an end result of CCPs obtaining more margin is that they keep themselves solvent by sucking liquidity out of the system for everyone else. If CCPs are to be risk reducing for the system as a whole, it is necessary that their discretion to demand margin should be limited, and the way in which they compute…

The legislative language authorizing the CFPB () provides as follows: 

There is established in the Federal Reserve System, an independent bureau to be known as the 'Bureau of Consumer Financial Protection', which shall regulate the offering and provision of consumer financial products or services under the Federal consumer financial laws.

It is not the job of the CFPB to regulate bank mergers. There is no doubt that many of the senior regulators…

Defenders of recent SEC actions argue that their rulemaking efforts are just "simple, common sense." When an agency is making rules that impact a major part of the economy, that provides services directly or indirectly to everyone, and that sells numerous different products of all types, there is actually not very much that is simple common sense. It's actually quite complicated, and the details matter. The SEC is not capable of giving birth to rules as if it were Zeus giving birth to Athena…

Mr. Grewal gets the problem exactly right, albeit perhaps not the way in which he intends. To quote Mr. Grewal, crypto market participants "want a different set of rules than those that apply to everyone else." That is correct. Crypto market participants want a set of rules that are designed for that asset type. That is not a desire that is unique to crypto. The regulations that apply to corporates are not the same as those that apply to investment funds, which are not the same as those that…