ARK Investment Management CEO Cathie Wood Believes that regulators should have focused on the opaque vulnerabilities of the traditional banking system, rather than blocking decentralized financial platforms “that have no core vulnerabilities”.

Wood’s comments come at a time when the US banking system is experiencing a crisis that follows the closure of Silicon Valley Bank And signature bank that fueled fears of infection. However, cryptocurrencies have fared relatively much better over the past five days of panic Bitcoin BTC/USD Increase over 23% and ether ETH/USD gain over 20%.

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“While The US banking system blocked In response to bank runs threatening regional banks, Bitcoin, Ethereum and other crypto networks didn’t miss a beat. Instability in the banking system threatened stablecoins, the ramps to DeFi, in stark contrast to the rhetoric of regulators,” Wood said in her tweet.

Role of the regulator: She quoted ARK researchers Frank Downing’S Tweet that said despite the USD coin USDC/USD The decoupling from the dollar “remained the Maker protocol overcollateralized and fully operational over the weekend.”

“DAI in circulation is up $1 billion (+25%). The demand for more transparent, auditable and decentralized financial services has never been greater,” Downing tweeted.

Wood claimed that regulators should have overseen the whole crisis that was looming large in public. “…Mismatches in maturity of assets and liabilities as short-term interest rates rose 19-fold in less than a year and deposits in the banking system fell year-on-year for the first time since the 1920s!” she said.

Musk’s view: Tesla boss Elon Musk expressed his opinion on Wood’s handling of the crisis. Musk agreed, saying there are many similarities between the current year and 1929, when the Great Depression started.