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The Shape of Crypto Regulation on Display

Updated: Sep 21, 2019

Every once in a while, the daily momentum measurement delivered by our platform delivers an unexpected result. Take Monday morning, September 16, 2019. The most active issues on the platform were in FinTech regulation and banking….far outpacing trade and Brexit policy issues for a change. On a Monday morning.

Spoiler Alert -- if you did not realize that major stablecoin issuers met with global central banks from G7 and G20 countries in the last 24 hours, you are in for a surprise. When we Googled it after the fact, the only major media outlet reporting on the meeting was and they did little more than parrot the press release.

Super Spoiler Alert -- using our platform on Monday morning also made it possible to discern the specific policy trajectory likely discussed behind closed doors in Basel. If you took the additional effort of actually reading the materials (which many don't these days), then you would also have known the direction policymakers are likely to take. All before breakfast.

And so follows the Case Study paired with predictive analytics at the end.

Case Study

Our platform users greeted the day with the following chart on their smartphones this morning.

This is the kind of picture that delivers significant information triage opportunities, because the first thing any reasonable person would ask is: what happened in the last 24 hours to knock Brexit and trade off the top spots?

Note that policymakers were taking action and, when the chart was generated, no media had reported on it. Traders reading this blogpost at this stage could be excused for doing a happy dance at the idea of being able to trade from publicly available, credible information that so far has not hit the media.

Less than 5 seconds after seeing the chart above, most people would take the next logical step and click on the FinTech column. This action generates the following detail chart guaranteed to wake up any cryptocurrency enthusiast long before the caffeine has hit their system: So much actino on so many key kssues.

The FinTech policy space was lighting up with many terms flagged earlier this year by the Financial Stability Board as being key to the policy process.

The third click would be on any one of the issues above. The fourth click would be to the source document...either on a live link to the source document in its natural habitat or to the PDF stored in our data lake....with all the metadata tags highlighted of course. By the way, those source documents included a dense research paper positing a framework for expanding the regulatory perimeter in the blockchain space.

So four clicks and less than 30 seconds delivered platform users to the knowledge that big things were happening in Basel. An inflection point is upon us.

Connecting the Dots

This is why subject matter experts and people with concrete policy experience are crucial to the machine interface. There are certain dots that machines programmed from the kitchen sink of the news cycle, blogs, and Twitter cannot (yet) connect.

In this case, you had to have pulled together a few of these confidential sessions at the BIS to realize that it is no coincidence that a research paper on a relevant topic was released at the same time as the notice of the meeting. When I was pulling those meetings together, press releases were never issued.

Yes, the conversation with the private sector was confidential….but it is a safe bet to assume that at least some official sector participants in the meeting had read (or edited) the research paper. Expanding the regulatory perimeter was certainly on the table.

Predictive Analytics

Our early stage platform in the hands of a superforecaster or even your garden variety policy geek delivers predictive anaytics. It does not take rocket science or artificial intelligence to anticipate what happens next.

Media attention to FinTech and cryptocurrency will skyrocket tomorrow (September 17) and in the run-up to the next Financial Stability Board meetings. Regular readers of our blog (see this August 2019 post as an example), platform users, and report subscribers won't be surprised. They will have spent the last few weeks getting ready for acceleraating momentum in the autumn.

Just wait until we start using the structured data from our patented process within ML/AI utilities. If VCs funded this kind of technology the way they fund hip scooters, apps, games, and salad bars, we would get there faster.

The Bottom Line

Four clicks.

Less than 30 seconds.

That is how long it took to put these puzzle pieces together….and that is even before diving in to the research paper itself.

This is what it looks like to “read smarter.” We do it every day for all the issues covered by our platform which focuses like a laser on the fact that words count, but context counts more.

What does it all mean? Until we can get serious funding to deliver the next step in our automated patented process, we are providing the analysis the old fashioned way -- through a report. The good news is that you can subscribe. In this case, our C | P | C Report subscribers will have the full analysis powered by quantitative risk measures on Friday, once the complete reaction function has played out.

Do you have more questions? Don't hesitate to reach out.

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