If you'd like an essay-formatted version of this thread to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
https://pluralistic.net/2025/12/13/uncle-sucker/#willing-marks
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Take "fintech." As Trashfuture's Riley Quinn is fond of saying, "when you hear 'fintech,' think 'unregulated bank'":
https://pluralistic.net/2022/03/02/shadow-banking-2-point-oh/#leverage
I mean, the whole history of banking is: "Bankers think of a way to do reckless things that are wildly profitable (in the short term) and catastrophic (in the long term). They offer bribes and other corrupt incentives to their watchdogs to let them violate the rules, which leads to utter disaster."
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From the 19th century "panics" to the crash of '29 to the S&L collapse to the 2008 Great Financial Crisis and beyond, this just keeps happening.
Much of the time, the bankers involved have some tissue-thin explanation for why what they're doing isn't *really* a violation of the rules.
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Think of the lenders who, in the runup to the Great Financial Crisis, insisted that they weren't engaged in risky lending because they had a fancy equation that proved that the mortgage-backed securities they were issuing were all sound, and it was literally *impossible* that they'd all default at once.
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The fact that regulators were bamboozled by this is enraging. In hindsight (and for many of us at least, at the time), it's obvious that the bankers went to their watchdogs and said, "We'd like to break the law," and the watchdogs said, "Sure, but would you mind coming up with some excuse that I can repeat later when someone asks me why I let you do this crime?"
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It's like in the old days of medical marijuana, where you'd get on a call with a dial-a-doc and say, "Please can I have some weed?" and the doc would say, "Tell me about your headaches," and you'd say, "Uh, I have headaches?" and they'd say "Great, here's your weed!"
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The alternative is that these regulators are so bafflingly stupid that they can't be trusted to dress themselves. "My stablecoin is a fit financial instrument to integrate into the financial system" is as credible a wheeze as some crypto bro walking up to Cory Booker, flashing a homemade badge, and snapping out, "Federal Wallet Inspector, hand it over."
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