Michael Shing

Focused on emerging crypto regulation and risk assessments of crypto firms. Former public servant at Federal Reserve (banking regulation and risk management).

[Michael Shing @mikeshing]

Like it or not, DeFi regulation is coming. Given the current direction of the world’s regulators and policymakers, the industry should be more proactive in shaping the future of DeFi regulations and head off the dangers of over-regulation.

My latest op-ed in @Forkast_News

[Ethoswarm @Ethoswarm]

#DeFi regulation — it’s not a matter of if, but when.

DeFi regulation is mostly out of scope in both European and American frameworks, writes @mikeshing of XREX.

Read his opinion piece here: https://t.co/w5UaKd0BWO

https://t.co/HcHK6XsgpN

[Michael Shing @mikeshing]

New holistic risk assessment framework for evaluating stablecoins (EF Grant Recipient). Looks like the @DuneAnalytics dashboard is in it's early stages but off to a great start. We need this type of analysis as more and more tokens are intro'ed and marketed as "stablecoins."

[Tamamatammy @tamamatammy]

Introducing a new Stablecoin Risk Assessment Framework (SRAF),

An open source project focusing on characterizing all different types of stablecoin risks rather than only trends and yields.

🧵 and dashboard 👇

[Michael Shing @mikeshing]

Know what you're getting into if you're investing in tokenized art, tokenized apartments or tokenized anything. Many projects do not have viable legal structures. You may end up with owning the liability of an entity that you ultimately have no recourse against. #DYOR #snakeoil

[_gabrielShapir0 @lex_node]

Purported "tokenization" of purported "RWAs" is mostly fake/impossible--a brief thread

[Michael Shing @mikeshing]

@adamscochran To rub salt in the wound, those GSIBs will likely earn a much higher yield than those FRC depositors.

[Michael Shing @mikeshing]

@DanielaGabor Part of the explanation is Fed policy to reduce stigma associated with discount window borrowing.

[Michael Shing @mikeshing]

@yishan Primary credit is “discount window” borrowing at the Fed. Historically there is a stigma attached to this borrowing as it may signal financial trouble. Fed policy has actively worked to reduce stigma and encourage the use of the window in recent times. https://t.co/bpJouIMtpX

[Michael Shing @mikeshing]

@yishan Primary credit is “discount window” borrowing at the Fed. Historically there is a stigma attached to this borrowing as it may signal financial trouble. Fed policy has actively worked to reduce stigma and encourage the use of the window in recent times. https://t.co/bpJouIMtpX

[Michael Shing @mikeshing]

@balajis @dandolfa Not a fan of “it’s all the Fed’s fault” narrative but we do need to acknowledge circumstances preceding the current issues. 1) massive influx of liquidity/deposits from COVID monetary policy 2) credit risk aversion and perceived safety of UST 3) Dovish forward guidance on rates.

[Michael Shing @mikeshing]

@CaitlinLong_ BTFP helps solve liquidity problem but does nothing for unrealized losses or the hole in mark-to-market capital ratios. That would require a true bailout by redeeming underwater treasuries at par or a new TARP-like capital injection.

[Michael Shing @mikeshing]

Good practice to check your financial plumbing every so often

[Coinbase 🛡️ @coinbase]

USDC:USD conversions have been reinstated and are now operating as normal via API and UI. USDC will not be auto-converted to USD on Coinbase Exchange.

[Michael Shing @mikeshing]

@biancoresearch On a macro-level, higher deposit rates could help stem deposit "outflow" for the overall banking sector but SVB faced a crisis of confidence. Customers pulling funds from SVB were not influenced by whether their deposit rates were paying 0.5% or 5.0%.

[Coinbase 🛡️ @coinbase]

We are temporarily pausing USDC:USD conversions over the weekend while banks are closed. During periods of heightened activity, conversions rely on USD transfers from the banks that clear during normal banking hours. When banks open on Monday, we plan to re-commence conversions.

[Circle @circle]

1/ Following the confirmation at the end of today that the wires initiated on Thursday to remove balances were not yet processed, $3.3 billion of the ~$40 billion of USDC reserves remain at SVB.

[Mike Selig @MichaelSelig]

Don’t sleep on the SEC’s action against Do Kwon and TFL. The complaint includes a ton of novel legal theories that can be applied to stablecoins, wrapped tokens, liquidity pool tokens and other crypto assets. Steady lads… /1

[Michael Shing @mikeshing]

@nic_carter This cannot possibly be the intended outcome, can it?

[Michael Shing @mikeshing]

"DFS has ordered Paxos to cease minting Paxos-issued BUSD as a result of several unresolved issues related to Paxos’ oversight of its relationship with Binance in regard to Paxos-issued BUSD." ~NYDFS

[NYDFS @NYDFS]

#ICYMI: #NYDFS Consumer Notice Regarding Paxos-Issued BUSD. Learn more: https://t.co/Oy8v8kHjnc

[Michael Shing @mikeshing]

Might be important... #RevesTest #Howey #SEC

[miles jennings @milesjennings]

1/15 Good article by a @LathamWatkins team highlighting potential issues with the SEC's use of Reves to regulate DeFi. Several important takeaways for those designing DeFi systems. Summary 🧵👇

https://t.co/vaNToiB8dI

[Michael Shing @mikeshing]

@michaelselig Commissioner @HesterPeirce safe harbor proposal is more important than ever. Without safe harbor, the SEC can snipe everything at will. https://t.co/HXHv8kX0H8

[Hester Peirce @HesterPeirce]

My thoughts on today's Kraken settlement: https://t.co/mijt3MNN4U

[Michael Shing @mikeshing]

Its becoming more and more evident that it's legislation or bust.

[Blockchain Association @BlockchainAssn]

The following statement is attributed to @kristinsmith in response to today's settlement between the SEC and Kraken:

https://t.co/32KysvKfz0

[Michael Shing @mikeshing]

Oldie but a goodie "This Is Howey Do It"

[U.S. Securities and Exchange Commission @SECGov]

Our framework for determining whether a digital asset is a security: https://t.co/3of3uuZLQE #FinHubSEC #Crypto #DLT #Blockchain #FinTech

[Michael Shing @mikeshing]

For some of the projects out there, your token on the blockchain ledger, at best, amounts to a good-faith IOU to something of value, at the discretion of some centralized entity. #CaveatEmptor

[Michael Shing @mikeshing]

Important things to consider for real world assets (RWA) on-chain: "Digital property rights" is often marketed by NFTs but actually, they are worlds apart from real-life property rights, enforceable in a court of law. Incredible amount of legal heavy lifting yet to be done.

[wassieloyer @wassielawyer]

1/ Further thoughts on on-chain RWA.

The idea is in principle ok - but execution requires an incredible Web3 + Legal + IRL Ops team which no project has right now.

Without this - its just a sexy narrative to pump a garbage token, raise funds or make people pay for your house.