BitGo CEO Mike Belshe warned on Oct. 2 that the failure of the CLARITY Act to advance has left the U.S. crypto market exposed to systemic risk. He pointed to the concentration of exchange operations, brokerage services, and asset custody under a single institution as the main concern. Belshe said the structure deserves even more caution than the risk seen in the Lehman Brothers episode. In his view, the collapse of a broker may lead to limited losses, but if the same firm also runs a trading venue and holds client assets in custody, its failure could drag the broader market into crisis. The remarks focus on market structure risk rather than a specific company and frame the legislative delay as a continuing vulnerability for the U.S. crypto sector.
BitGo CEO Mike Belshe warned on Oct. 2 that the CLARITY Act’s failure to advance has left the U.S. market exposed to systemic risk, according to BlockBeats.
He said the main concern is the risk created when a single institution controls exchange operations, brokerage services, and asset custody at the same time.
Belshe said that combination is more alarming than the risk highlighted by the Lehman Brothers episode. A broker’s collapse may cause localized losses, he said, but if the same firm also operates a trading platform and provides custody, its failure could pull the entire market into crisis.
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