Cowen notes officials say they’re unsure they can regulate 100%‑reserve stablecoins into safety, yet claim the fractional‑reserve banking system is well managed. The inconsistency suggests incumbency bias: comfort with legacy risks but suspicion toward structurally safer crypto instruments. Expect this frame to recur as stablecoin legislation and rulemaking advance.
— This double standard shapes how digital money will be governed and signals whether regulation protects incumbents or actual safety.
msmash
2025.10.16
46% relevant
The incident underscores that even 'fully reserved' stablecoins are operationally centralized: issuers can mint/burn vast sums instantly. That practical control is the kind of risk regulators cite when expressing skepticism about regulating stablecoins into safety.
Tyler Cowen
2025.09.07
100% relevant
The paired quotes: 'we’re not sure we can regulate [100%‑reserve stablecoins] into safety' versus 'the rest of the system has nothing like 100% reserves, but… we have everything there under control.'
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