Governor Bowman has been a consistent critic of what she believes are the failures of banking regulators to with a proper analysis of costs and of their failure to focus on those issues that should be matters of their primary focus (i.e. prudential bank regulation and supervision, rather than e.g. .)  

Here are excerpts from pages 16-17 of the enforcement action (in reverse order for clarity).

[Defendant] KuCoin describes its leveraged tokens as “unit share[s] of a leveraged fund.” KuCoin is the manager of these “leveraged funds” and the creator of the leveraged tokens. In that capacity, KuCoin finances and oversees the leverage of the fund and charges management fees that vary according to market conditions. Customers may buy and sell KuCoin’s leveraged…

The custody rules around clearing are going to be very challenging for broker-dealers to implement.

There are a lot of questions that the SEC still has to resolve. For example, in a world where a broker-dealer's custodial requirements must be calculated daily (assuming is revised to require daily calculations), and the FICC demands margin from broker-dealers on a schedule that is inconsistent with the ability of broker-dealers to obtain margin from their customers, a broker-dealer…

Here are excerpts from pages 16-17 of the Ku-Coin enforcement action (though I reversed the order of the excerpts for clarity).  

KuCoin describes its leveraged tokens as “unit share[s] of a leveraged fund.” KuCoin is the manager of these “leveraged funds” and the creator of the leveraged tokens. In that capacity, KuCoin finances and oversees the leverage of the fund and charges management fees that vary according to market conditions. Customers may buy…