misinterpr.eth

As the US drags, stumbles and fumbles its crypto regulations it’s arch rival waits in the wings… The center of global financial markets flips every decade or so between London and NYC. London has been exceptionally good at US regulatory arbitrage, when the US flounders on a particular big issue. The UK was the center of all FX trading post the US leaving the Gold Standard due to US currency restrictions. Things accelerated in the ‘80’s and ‘90’s as London captured the regulatory arbitrage opportunity of the giant Eurodollar markets and again with the derivative markets. London eclipsed NY in global importance and volumes. In the 2000’s the US gained back its leadership role as EU post-crisis standards tightened and the UK left the EU. Now we are faced with exactly the same opportunity in crypto. The US is fearful of losing control of the dollar system over time, and is scoring own goal after own goal and dragging its heels on attracting the $1trn +crypto industry. Meanwhile, the UK has made it 100% that it wants to go all in to capture this opportunity, using its ace card of regulation arbitrage, in which it excels. The UK understands this. It also has closer alignment with the other much needed partners of HK, Singapore, UAE and offshore centers like Cayman, in order to make this globally successful. It will roll out its CBDC soon too. The US probably has one year to sort it’s shit out, get rid of Gensler and set out good regulation but that seems a near zero chance. If the US don’t sort their shit out, you will hear the giant sucking sound of London attracting every major crypto firm and accelerating the space globally without the US having as large a say and left floundering. All the crypto industry needs is a home with good regulation, that speaks English, has a global infrastructure and optimal rule of law and is easily livable. That may well be the UK. The downside is you get sideways rain for 11 months of the year… The UK has not finalized it’s regs yet but they know the opportunity.