CZ touts rules for securitization of digital assets in new tweet thread

Dorian Batycka
Dorian Batycka

17 Mar 2023 10:36 AM

CZ's early morning thoughts echo others in the crypto community who worry that exposure to traditional finance can also hurt the industry....

  • Changpeng Zhao, CEO of Binance, responds to the banking crisis contagion in the US, Europe, the UK, and Switzerland.
  • Wall Street banks agreed to provide $30 billion to prop up First Republic bank after fears started to spread that it was facing liquidity issues.
  • Circle, the company behind the stablecoin USDC, was forced to raise capital after over $3 billion it held in reserves was threatened by the Signature’s collapse.
  • The Federal Deposit Insurance Department (FDIC) had to step in to rescue the banks last weekend.
  • CZ and others reiterate their desire to see exchanges regulated like banks.
  • CZ gives some interesting parting thoughts for the industry to consider: don't lend out customer money to make money, let VCs do that; no revenue? charge a transparent fee for your services, like facilitating transactions (tx); tx cost too high? use blockchain tech to lower your costs; keep business simple.

The article discusses a serious issue of banking crisis contagion, but CZ's response and parting thoughts offer some potential solutions and a positive outlook for the industry. Overall, the sentiment is neutral to slightly positive.

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Related Questions

What is the banking crisis contagion and how has it affected the US and Europe?
How did Wall Street banks respond to the crisis and what was their involvement with First Republic bank?
What happened to Circle and its stablecoin USDC during the crisis?
How did the Federal Deposit Insurance Department (FDIC) intervene to rescue the banks?
What are CZ's suggestions for the industry to address the crisis and improve business practices?

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