Following the much larger failure of Silicon Valley Bank, another California state bank, this raises the question of whether the California banking regulators are sufficiently aggressive.

Just like that, AI has completely supplanted climate change as the hot new concern that all of the regulators must chase for headlines. If the state regulators believe that state regulation would be beneficial, then it is incumbent on the states to describe what such regulation might look like. It is difficult to imagine how competing countries could coordinate globally on restraining uses of AI. Do the AGs believe that a hodgepodge of state regulations brings anything to the table…

It is really shocking that the SEC under Chair Gary Gensler adopted the clearing requirement with so little analysis of its costs. If margin costs rise materially, it will cost more to fund the federal deficit.