Crypto regulation alone cannot solve the institutional settlement gap, says Lynq CEO

An Aug. 19 White House meeting involving at least six crypto and prediction-market firms has brought institutional settlement into focus as Lynq CEO Jerald David warns that regulation cannot make cash and collateral move around the clock. Summary At least six crypto and prediction-market firms are expected at the Aug. 19 White House meeting. David said institutions still face funding and collateral problems after completing trades. US payment systems do not all operate on the same round-the-clock schedule as crypto markets. Tokenized cash projects are testing 24/7 settlement, margin, and collateral transfers. Lynq CEO Jerald David told crypto.news that clearer rules would remove only one barrier facing financial institutions as digital assets, tokenized securities, and traditional markets become more closely connected. Once an institution completes a trade, it must still fund the position, deliver cash, and move any required collateral. According to David, each step becomes more difficult when firms use several exchanges, counterparties, and forms of money across markets that remain open overnight and through weekends. “I think regulation is obviously a big part of the conversation...