An Unseen Financial Threat and the Need for Regulatory Reform

Sunday, 8 December 2024, 14:00

An unseen financial threat looms before Trump and his Treasury, demanding a smarter regulatory approach. The antiquated financial regulatory system is incapable of addressing today's complex economic challenges. To avert another financial crisis, significant reforms are essential to ensure all financial entities are adequately regulated.
Thehill
An Unseen Financial Threat and the Need for Regulatory Reform

Understanding the Financial Threat

An unseen financial threat looms before Trump and his Treasury, rooted in an antiquated regulatory approach. Today's financial landscape is increasingly populated with unsupervised funds and fintech companies, heightening risks for the economy. This regulatory mismatch calls for immediate reform to safeguard against future crises.

Historical Context and Growth of Risks

  1. The Flaws of Current Regulations: Established in the aftermath of the Great Depression, today's regulatory framework is far from sufficient.
  2. Emergence of Nonbank Entities: The rise of nonbank entities and crypto companies poses additional challenges.
  3. Historical Economic Crises: Past financial panics showcase the consequences of under-regulation.

The Proposed Path Forward

To build a more resilient oversight system, a new approach is needed:

  • 1. Equitable Regulation: Ensure all financial entities, regardless of their type, are subject to oversight.
  • 2. Real-Time Monitoring: Adopt predictive regulatory methods for timely intervention.
  • 3. Cooperative Framework: Foster collaboration between public and private sectors to enhance regulatory efficacy.

The Role of Cryptocurrency

The explosive growth of cryptocurrencies requires immediate regulatory attention, particularly as they increasingly finance illicit activities. Real-time and competent regulation of these ventures is critical to maintain economic stability.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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