ARK Invest chief executive Cathie Wood has slammed regulators over the failure of Califonia-based Silicon Valley Bank.
Attention should have been focused on the crisis “looming in plain sight” in the traditional banking sector instead of cracking down on decentralized finance (DeFi) platforms and crypto said the outspoken ETF fund manager.
”Instead of blocking decentralized, transparent, auditable and well-functioning financial platforms with no central points of failure, regulators should have been focused on the centralized and opaque points of failure looming in the traditional banking system,” Wood said in a tweet.
“They should have been all over the crisis that was looming in plain sight: asset and liability duration mismatches as short rates soared 19-fold in less than a year and deposits in the banking system were falling on a year-over-year basis for the first time since the 1920s!”
While the US banking system was seizing up in response to bank runs threatening regional banks, Bitcoin, Ethereum, and other crypto networks didn’t skip a beat. Instability in the banking system threatened stablecoins, the on-ramps to DeFi, in stark contrast to regulator rhetoric https://t.co/r5xwC96Pdj
— Cathie Wood (@CathieDWood) March 15, 2023
Wood added that while the US banking system was seizing up in response to bank runs threatening regional banks, “Bitcoin, Ethereum, and other crypto networks didn’t skip a beat.”
“Instability in the banking system threatened stablecoins, the on-ramps to DeFi, in stark contrast to regulator rhetoric,” Wood said.
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