A 21st-Century vision is needed to re-wire and restructure the financial system for its digital destiny, not the backward-looking effort to rewrite the 20th-Century Glass-Steagall Act.
The technology of the future that is thought capable of revolutionizing financial institutions and its regulators is already here. But with no national plan to harness it for economic betterment or regulatory transparency, it may well represent another missed opportunity to restructure the financial system.
Instead of a myriad of regulators and industry members approaching this piecemeal, a comprehensive industry/government partnership is needed to guide the country and to lead the world in rewiring the financial system.
One need only look to the evolution of the internet, with its revolutionary concepts of distributed communication that fundamentally changed how the world and its financial institutions communicate. A similar revolutionary technology, distributed ledger technology (DLT), is promising to fundamentally change how financial institutions store and report information, but only if it can become a common good like the internet.