Belshe Warns of Cryptocurrency Collapse Risk in Integrated Firms
BitGo CEO Mike Belshe has sounded the alarm on the risks of vertically integrated digital asset firms, warning that they could trigger a collapse similar to the 2008 failure of Lehman Brothers.
The timing is particularly relevant as it comes weeks after the Clarity Act stalled in the US Senate, leaving the market without the structural guardrails many had been counting on.
Belshe argues that exchanges, brokerages, and custodians should be distinct businesses, not divisions of the same company. He points to historical precedent, stating that exchanges have never held custody of assets in the traditional model.
He warns that if a firm concentrates multiple activities under one roof, its customers become exposed to the overall financial health of the company, rather than just the service they signed up for.