I think about Maya on the day she graduated from college. She was sinking under the weight of her student loan debt and just scraping by on her rent in Brooklyn. The old financial world was a closed safe, protected by fees and requirements that she never got her way through. As someone who truly believed in the promise of decentralization that crypto offered, it was a beautiful key. Our one best key to unlocking a better future. Enter Schwab, the goliath of legacy finance, who is now sailing into the crypto waters. Is that a victory for Maya and children like her? Or is it just another ploy by Wall Street to further entrench their power and influence?

Democratization or Institutional Land Grab?

The truth is Schwab and they’re just claiming to be “getting into crypto” to respond to client demand—and there really are 400% more crypto queries. Okay, sure. But I put to you, is this about empowering the retail investor, or is this about getting their business? Their assets, their data, their future earnings into the Schwab ecosystem. Think of it like this: it's like Amazon opening a "local" bookstore. Sure, it’s a neighborhood bookstore, great—but whose neighborhoods are we really helping?

Remember the GameStop saga? A bunch of average Joes, empowered by technology and social media on platforms like Robinhood, challenged and arguably beat Wall Street hedge funds. But it was chaotic, disruptive, unpredictable – and in the end, the ecosystem appeared to favor the incumbents. Now, of course, Schwab, with its $7.13 trillion AUM, is making its move into crypto. What does that tell us about the supposed democratization of finance? Look at BlackRock, they filed for digital shares in Money Market Fund to use blockchain tech. This doesn't seem to really align with the people.

Volatility: A Feature, Not a Bug?

Schwab CEO Rick Wurster cautions about volatility. That’s conveniently rich, coming from a company that makes money off of all market activity, including volatile. First of all, understand that Bitcoin and Ethereum are, in many ways, the “blue chips” of crypto. They pose serious hazards, particularly to unseasoned investors.

Here's the uncomfortable truth: crypto is the Wild West of finance. Scams are everywhere, rug pulls happen every single day, and the potential for manipulation is staggering. Are we truly doing right by financially vulnerable people like Maya? Providing them fractional shares of Bitcoin on a platform that exclusively aims to serve higher net worth clients just doesn’t pass the smell test. This is where the emotional triggers of anxiety and fear are useful.

Consider this: a young person, already struggling with debt and limited opportunities, sees crypto as a quick path to wealth. They invest their life savings, only to have the market crash. Who bears the brunt of that loss? It's not the wealthy investor with a diversified portfolio; it's Maya, who just lost her rent money.

From where I sit, I see distinct parallels to the imperiled subprime mortgage crisis. Lenders, looking to cash in on the housing bubble, provided subprime loans to borrowers that were unlikely to be able to pay them back. The consequences were devastating. Are we about to do the same thing all over again with crypto? People living on the margins may be lured into a risky market, lured by the prospect of immediate wealth.

Regulation: A Shield or a Shackle?

Schwab’s move comes at a time when many believe the regulatory tide has turned favorable toward RIAs. The crypto industry needs robust regulation, not just a green light for institutions to move in. We need transparency, accountability, and consumer protection. The type that truly looks out for the consumer.

Without these safeguards, Schwab’s entry into the crypto market is likely to exacerbate the problems that already exist. Further, it might become a casino for institutional investors, while retail investors encounter worsened hazards.

  • Clear definitions of crypto assets: Are they securities, commodities, or something else entirely?
  • Licensing requirements for crypto exchanges and custodians: To ensure they meet minimum capital requirements and security standards.
  • Anti-money laundering (AML) and Know Your Customer (KYC) regulations: To prevent illicit activities.
  • Consumer protection measures: To protect investors from fraud and manipulation.

Giving people crypto trading access on a traditional platform isn’t financial democratization. Rather, true democratization will only come through systemic political reforms that tackle the short- and cumulative systemic causes of today’s growing economic inequality. It means:

Beyond Crypto: Systemic Change

At the end of the day, Schwab’s move is a business decision, nothing more. And it’s not even necessarily about empowering the people—it’s about lining their pockets. To avoid further economic catastrophes, we need to expect better from our financial system. Together, let’s support policies that create equity and opportunity for all people.

  • Increasing access to affordable education and healthcare.
  • Raising the minimum wage and strengthening worker protections.
  • Reforming the tax system to reduce inequality.
  • Promoting community ownership and decentralized governance models.

Rather than pushing for fractional Bitcoin, let’s push for fractional ownership of companies. We need more community-owned banks and genuinely decentralized financial systems that put power in the hands of the people — Wall Street be damned. That’s the kind of key Maya, and millions of other Mayas, deserve.

Perhaps, instead of fractional Bitcoin, we should be pushing for fractional ownership of companies, community-owned banks, and truly decentralized financial systems that put power in the hands of the people, not just Wall Street. That's a key Maya, and millions like her, deserve.