HALISTER1: Regulators Scramble to Get Up to Speed on Blockchain: Guggenheim

Regulators Scramble to Get Up to Speed on Blockchain: Guggenheim

(Bloomberg) -- Washington desperately trying to “get up to speed” with blockchain technology, digital currencies; likely to insist cos. disintermediating banks follow same consumer protection, money laundering regimes that exist today, Guggenheim’s Jaret Seiberg writes in note.
  • May be challenge for businesses which were counting on less- regulated environment to make products viable; sees banks as likely to lead rollout as new tools make existing system faster, less expensive
  • Sees regulators embracing information-sharing aspects of technologies, including to track securities ownership, record mortgages, detail syndicated loans, as boosting transparency, speeding transactions, lowering costs are public policy objectives
    • Doesn’t see regulators allowing blockchain, digital currencies to become backdoor for engaging in banking without regulation; cites money laundering, terrorist financing, consumer protection issues, particularly for retail products like remittances, debit card transactions
  • Related:
    • Feb. 16, Alphabet Should Buy AIG, Make It ‘Fintech Lab’: Citi
    • Feb. 12, Deutsche Bank watching why JPMorgan entered strategic relationship with ONDK, may have bought LC loan portfolio, amid potential risks, including regulatory/political risks at JPMorgan Feb. 23
    • Feb. 4, Visa Opens Payment Technology Platform for Developers
    • Feb. 2, Marketplace Lenders Face Increasing Policy Risk: Guggenheim
    • Dec. 29, Fintech Cos, Regulators Face High-Velocity Change: SVB’s Wallace
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
XLF US (Financial Select Sector SPDR Fund)
JPM US (JPMorgan Chase & Co)
LC US (LendingClub Corp)
ONDK US (On Deck Capital Inc)
PYPL US (PayPal Holdings Inc)

People
Jaret Seiberg (Guggenheim Securities LLC)

Topics
Financial Technology

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