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3) Areas for regulation: a) Stablecoins: creating a registration/transparency/audit regime on assets b) Token issuances: a paradigm for digital assets with security-like properties c) Markets: unified frameworks and cross margin for spot/derivatives
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4) We think that a registration and transparency regime for stablecoins would address most of the worries while keeping their utility. Stablecoins are one of the most promising parts of crypto: for payments, settlement, etc.
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5) Such a regime could: a) mitigate reserve volatility risk by regulating which assets can back a stablecoin and potential risk haircuts on them, and mandating transparency and audits b) ensure customers can cash out c) blacklist address associated with financial crimes
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