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Ark Invest's Cathie Wood: The crypto network has not been affected by bank runs, regulators should focus on the opacity of traditional banks.

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Cathie Wood, founder of ARK Invest, also known as "Wood Sister," has shared her views on the recent bank failures.

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Cathie Wood, the founder of ARK Invest, also known as "Wood Sister," has expressed her views on the recent bank failures:

When the U.S. banking system faced the threat of bank runs that could jeopardize regional banks, Bitcoin, Ethereum, and other cryptocurrencies continued to operate normally without being affected. However, the instability of the banking system poses a threat to stablecoins─the gateway to DeFi, which sharply contrasts with the remarks of regulatory authorities.

Regulatory agencies should not hinder decentralized financial platforms, as they possess characteristics of decentralization, transparency, and resistance to censorship, with no central point of failure and continue to operate smoothly. On the other hand, the centralized and opaque failure points in traditional banking systems are what regulatory authorities should focus on.

Wood also criticized regulatory agencies for not recognizing the current crisis─the mismatch between the assets banks buy in the form of bonds and the liabilities in the form of deposits, as short-term interest rates have surged 19 times in less than a year, while bank deposits have experienced the first year-over-year decline since the 1920s!

Note: Recent significant outflows of bank deposits have forced banks to sell their long-term bonds, which have incurred significant losses due to interest rate hikes, ultimately leading to bank failures.

Meanwhile, amidst the recent stock market decline, ARK Invest once again seized the opportunity to increase holdings of shares in Block, the payment company owned by Twitter founder Jack Dorsey, by approximately $6.4 million.