Navigating the GameStop Short-Selling Crisis

This chapter explores the GameStop short-selling crisis, highlighting the excessive short-selling that led to an artificial suppression of share prices. It emphasizes the role of blockchain technology in transforming securities trading and addresses the regulatory implications stemming from the event. The discussion also covers the emerging collaboration between traditional finance and cryptocurrency sectors, exemplified by the upcoming launch of Avanti.

Play episode from 53:45

chevron_right

Transcript

chevron_right

Transcript

Episode notes

Caitlin Long, founder and CEO of Avanti Financial Group, talks about the issues plaguing the current state of technology in traditional finance and how her background as a 22-year Wall Street veteran, gubernatorial appointee to the Wyoming Blockchain Task Force, and crypto pioneer is helping her shape Avanti into a bridge between conventional banking and crypto. Tune in to hear Caitlin discuss:

the current state of crypto adoption on Wall Street (1:09)
how her entrepreneurial spirit galvanized a career spanning Wall Street, the Wyoming Legislature, and, now, crypto banking (2:07)
why Caitlin fell in love with Bitcoin (4:57)
fractional reserves and why the current financial system is a “violation of property rights” (7:00)
how stablecoin technology will change banking leverage and what effects faster settlement times will have on inflation (11:30)
why corporate treasurers have been using BTC since 2014 in foreign exchange transactions (17:14)
what issues Wyoming is trying to solve through crypto legislation and why banks might be closing down customer accounts linked to crypto exchanges (19:18)
a proposed Wyoming bill that would prohibit judges from disclosing private cryptographic keys (28:32)
where the idea for Avanti came from and how it will be different than other banks (32:50)
existing problems with stablecoin regulation and a deep-dive into GAAP accounting for crypto (46:51)
why Wall Street’s accounting system is to blame for the GameStop and Robinhood situation (52:32)
whether or not a blockchain could work for settling securities (52:32)
her thoughts on pension funds and endowments directly owning crypto (59:54)
what it is going to take for Avanti to successfully bridge the gap between traditional finance and crypto (1:02:38)