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- Cathie Wood criticized the crypto regulators for denying US citizens access to crypto.
- The Ark Invest CEO shared her objection against Fed’s skyrocketing interest hikes.
- Wood added that many crypto assets face no central point of failure.
Cathie Wood, the CEO and CIO of the investment management firm Ark Invest criticized the crypto regulators for depriving US citizens the access to crypto, adding that the regulators have been making mistakes with the policy, threatening the crypto aspirants’ “well-being.”
Notably, in a recent tweet, the Ark Invest CEO shared her objections against the Federal Reserve’s skyrocketing interest rates and the administration’s suggestion to the investors in the regional bank to be prepared for a “wiped out.”
Ironically, as crypto assets soared during the Silicon Valley Bank meltdown, this administration suggested that investors in regional banks – equity and bond holders – should prepare to be “wiped out” in the aftermath of an unprecedented 20-fold increase in the Fed funds rate.— Cathie Wood (@CathieDWood) March 23, 2023
In a series of tweets, Wood exclaimed the crucial condition that the financial sector witnesses. She stated that the investors are hedging their fiat assets with some cryptocurrencies. At the same time, they lower risks and increase returns by moving from low-interest bank deposits to money market funds.
Interestingly, the CEO continued narrating that the institutions and investors could currently borrow “at will from a government facility at 4.5%” seemingly moving from a “liquidity crisis to a slower-moving solvency crisis”. She quoted:
Against depressed interest rates on the long-term assets they purchased during the coronavirus crisis, banks now are borrowing at ~4.5% to plug deposit outflows, causing net interest losses and lower earnings that will erode their equity and threaten their future.
Significantly, Wood questioned the US regulator’s agenda of preventing access to “decentralized, transparent, and auditable” digital assets. As per her point of view that stands against the perspective of the traditional finance sector, “many crypto assets face no central point of failure.”
Further, the American investor predicted that if the situation continues the same, the M2 growth would slip down into negative territory, after a long time since the 1930s, inflicting greater stress on both commercial and residential real estate.
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