ChainReg14: OMERTA

Understanding this week's global policy silence regarding crypto & stablecoins | Spotting forward policy signals hiding in plain sight | The SEC's latest move

Welcome to ChainReg Episode 14, a podcast focused on data-driven policy intelligence regarding digital currency issues.  From crypto to blockchain, from stablecoins to CBDC, our patented process provides perspective on where policymakers are active so you can make more strategic decisions based on cold, hard facts.

This week, we all returned from the Passover/Easter break and dove straight into an intense week of global policymaking at the IMF/World Bank, G7, G20 Spring Meetings.  This is the first time that the world’s finance ministers and central bank governors have met since the FTX/Silvergate/SVB/Signature Bank implosions. 

But the silence on crypto and digital currency policy issues was deafening. It feels like the global policy community has taken an OMERTA oath – a code of silence regarding cryptocurrency.

Policymakers went out of their way not to mention cryptocurrencies, which is consistent with the shift in language we noted back in February in Episode 8 (“When Everything Changed”).  The conversation is definitely shifting to blockchain and distributed ledgers. 

But what about when they discussed financial stability?  Silvergate was never mentioned. Nor was Signature Bank. Nor was SigNet.

Even today’s SEC proposal to reopen an important crypto-related regulatory proposal reflects a silent front because it delays for an indefinite period the need for U.S. securities regulators to act.  The SEC will remain silent on exchange regulation for months. 

Silence won’t last.  Next week’s Congressional and European Parliament schedules guarantee another noisy news cycle for crypto policy.  But before the posturing and talking points return, let’s have a good look at what the data around this week’s silence tells us.  Spoiler alert:  omerta signals an intensifying policy climate, not apathy or inattention.

Listen to the full episode (chart of the week; quote of the week; top three reads):

ChainReg14: OMERTA