WASHINGTON, D.C.— Amanda Fischer, COO and Policy Director of Better Markets, issued the following statement on the release of a special report entitled “Thin Ice: How October’s Crypto Rout Exposes Fragilities in Pending Market Structure Legislation” describing the connection between the October crypto flash crash and issues policymakers have so far ignored as they write laws to govern the market.
“On October 10, President Trump announced another set of proposed tariffs—this time on China at a rate of an additional 100 percent. The surprise declaration sent crypto markets spinning, with a reported (but unconfirmed) $19 billion in leverage evaporating, crypto prices falling, and 1.6 million traders liquidated,” Fischer said. “Crypto data analytics firm Coinglass reported that the day’s market tumble was the ‘largest liquidation event in crypto history,’ which is quite a milestone given that the crypto market is notorious for its volatility. Trump’s October Surprise unexpectedly wiped out many retail traders, exposed cracks in crypto market structure and revealed gaps in legislation pending before Congress.”
“Thin Ice: How October’s Crypto Rout Exposes Fragilities in Pending Market Structure Legislation” discusses the risks of unchecked leverage, incomplete market data, opaque pricing mechanisms, unaccountable customer remediation, lack of circuit breakers and gaps in international coordination and offers recommendations for policymakers for stronger guardrails and related protections.
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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.
