It is quite clear that Chair Gensler is of the view that all digital assets (except Bitcoin) are securities and that the ordinary securities rules generally apply.

The problem with Mr. Gensler's position is not a lack of clarity. The problem is that the ordinary securities rules are not practical for digital assets (other than those digital assets that are ordinary securities or debt represented on the blockchain) and, therefore, there is no practical way for firms to comply. If Mr.…

First, the statement that none of the bailout will be borne by taxpayers is somewhat misleading. The bailout is not being financed by other banks buying a business that had positive going forward value. Rather, it is being financed by government-imposed regulatory fees that must be passed through and eaten by shareholders or paid by customers in higher fees or lower interest rates on deposits.  

Second, the statement raises many questions. Are all bank deposits from now on…

From an administrative law standpoint, the agency is a strange creature, particularly in its ability to obtain funding that it outside of congressional control. The structure of the agency and its funding mechanism will most likely be determined by courts reviewing whether they violate the Constitution.

Very few derivatives have a term to maturity that is so long that climate change is a material risk embedded in the contract.  If the CFTC is looking for materials risks to attend to (although these are also risks as to which it lacks express authority,) perhaps they can turn to regional conflicts and supply chain disruptions.