Tags: Money Reimagined

(CSA Images/GettyImages)

(Kevin Dietsch/Staff/GrettyImages/PhotoMosh)

Atmosphere (Shutterstock/CoinDesk)

(Stephen Lovekin/Shutterstock/CoinDesk)

(DALL-E/CoinDesk)

AI Artwork SBM Sam Bankman-Fried (DALL-E/CoinDesk)

(wildpixel/GettyImages)

The recent collapse of three high-profile banks - Silicon Valley Bank, Silvergate Bank and Signature Bank - has caused worrying outflows at hundreds of regional banks. Now, with the U.S. Federal Reserve creating a new backstop facility reportedly worth $2 trillion and Switzerland’s central bank bailing out Credit Suisse to the tune of $54 billion, the echoes of crises in 2008 and 2013 are loud.

Separation-of-powers offers hope to an industry under attack from unchecked executive power, says Michael Casey, CoinDesk‘s chief content officer.

Tokenization of real-world assets has been dismissed by many crypto purists for operating under a centralized framework, but new technological advances have migrated the process from closed, permissioned projects onto public, permissionless blockchain platforms.

The government has great power to curtail the advance of this industry. In the same vein, it has the power to help it. Crypto leaders should recognize that power and seek to harness it constructively.

Moves to outlaw staking and stop banks from servicing crypto companies will harm the industry and send it overseas, says CoinDesk Chief Content Officer Michael Casey.

By definition, stablecoins are tethered to the real economy. But whatever links they have should be minimized, until their applications are fully proven.