Derivatives, Yield Curves, Lending.

These are the things Crypto is in trouble with Capitol Hill.

Finance in general is hard for most people to wrap their heads around. It’s not that they’re dumb. Finance is really hard to get the full picture unless you do a lot of research.

Finance Wizards like the ones on Wall Street speak a language most of us do not speak.

At Continuum Market, that finance language for forex, options, write-offs and more goes into a lexicon we call “Wall Street.”

Most people don’t speak Wall Street. At all. Those folks will be spending a lot of time at Investopedia researching the basics like I did.

A few people have a trusted translator for Wall Street.

Lots of people have an investment recommendation human but your finance guy is likely not fluent in Blockchain.

Blockchain is not a buzzword. It is a system of 1’s and 0’s that is a language of Technologists.

Learning the language of Blockchain will inevitably bump you into a few technologists who got the 1’s and 0’s to do some things that banks can do.

Web3 started as a way to get banks out of the middle. A Peer-to-Peer system that would render any middleman useless. Banks do not think of themselves as useless.

Banks and the Finance Industry in general are paying attention to what is happening in blockchain. They are quietly making a scramble to get ahead of it and use the decentralized ledger technology to run their own systems more efficiently. 

Banks want to offer crypto as a service of the bank. They don’t want to not exist.

Banks in the US are regulated to do things like issue a security, something that has value and can profit shareholders.

Banks have gotten in trouble from doing crazy Wall street things with money. They’ve been accused of payment reconciliation scandals. But they’ve never really gone to jail or been held accountable for 2008 or really anything of consequence.

Technologists said “We don’t need banks” and started getting the 1’s and 0’s to do the things that Wall Street does.

Banks went to Capitol Hill and said “Make them stop! This will put us out of business!”

So now Capitol Hill is deciding what crypto can and cannot do.

It doesn’t change that it’s already being done. They just don’t want Frank in his basement to have a stronger yield product than Citadel.

So now we’re in a world where to understand crypto, you have to understand Wall Street and all the things they think are normal.

Trust me, it’s enough to make your eyes glaze over, twice.

But if we’re going to define what is legal transaction behavior, I think the banks need to be held accountable when they do something that doesn’t work out as planned.

Since Wall Street and the US Dollar run the global economic engine, you can bet they’ll have a say in the politics of crypto.

It’s important to speak Wall Street so you can see the landscape and how it might change with regulation. 

Jan 2023, the United States will release crypto regulations in an effort to protect US Consumers.

Will these regulations protect a free market? Will US Consumers be able to choose the products they want?

To fathom these answers, you must first understand that Crypto is Wall Street on Crack.

It’s gonna be a Web3 World.

~KB