<instructions>Your goal is to analyze the following comment and estimate how highly it will be upvoted by the Hacker News community.</instructions><comment><author>et2o</author><text>&amp;gt; For banking there is a reason for regulation, and it is precisely deposits. Deposits are open to runs. Runs are bad for all sorts of reasons. Financial crises are runs. Hence we have banking regulations. That&amp;#x27;s not a defense of current banking regulation. But there is a problem and a reason for some regulation.&lt;p&gt;&amp;gt; But fintech doesn&amp;#x27;t take deposits. The one central problem with banking is gone.&lt;p&gt;All banking regulations are due solely to the fact that banks take deposits? There is no other reason one could imagine for why banks, FinTech, or other financial services providers need to be regulated? All financial crises are runs on deposits?&lt;p&gt;Pretty undeveloped and unconvincing reasoning. If you think for a few seconds it’s easy to imagine other situations that led to necessary regulations in banking.</text><parent_chain></parent_chain></comment><story><title>Fintech in Chains</title><url>https://johnhcochrane.blogspot.com/2020/09/fintech-in-chains.html</url></story>
<instructions>Your goal is to analyze the following comment and estimate how highly it will be upvoted by the Hacker News community.</instructions><comment><author>coderintherye</author><text>In general, I&amp;#x27;m in agreement with this thesis, but it ignores consumer protection. What entity should handle consumer protection in respect to fintechs? Should it fall under state and local laws? Then, what if Jonny in California (which has strong protections) takes a loan from Fintech X in South Dakota. Can Jonny apply California regulations to his loan, placing a cap on interest that he has to pay Fintech X? Can Fintech X take Jonny&amp;#x27;s house that he signed over as collateral, ignoring California&amp;#x27;s regulations?&lt;p&gt;Financial regulation is a giant headache here and in many of the countries we&amp;#x27;ve worked in. Looser regulation should be beneficial to most consumers. But what about consumers or businesses that sign themselves into bad deals or get purposefully taken advantage of? Which is really the heart of a lot of politics, how much do we protect people from their own poor choices.</text><parent_chain></parent_chain></comment><story><title>Fintech in Chains</title><url>https://johnhcochrane.blogspot.com/2020/09/fintech-in-chains.html</url></story>