DRS is the equivalent of a bank run on the DTCC, or the real owners of a gigantic portion of traded assets today.
The way things like stocks are traded is the DTCC actually owns the shares, while labeling the shares as "owned for the beneficiary of X". When stock trades hands, they just update the beneficiary to the new "owner" of the stock. The DTCC and it's member's abuse this system by allowing the update to not happen, causing "failure to delivers", and thereby GME's naked shorting.
DRS takes the stock from the DTCC and places you as the actual owner, not the beneficiary of the stock in someone else's hand. In doing so, the DTCC has less plausible deniability in allowing naked shorting, and if the combined DRS, insiders, and institutional shares near 100%, effectively create a bank run on the DTCC.
DRS is the equivalent of a bank run on the DTCC, or the real owners of a gigantic portion of traded assets today.
The way things like stocks are traded is the DTCC actually owns the shares, while labeling the shares as "owned for the beneficiary of X". When stock trades hands, they just update the beneficiary to the new "owner" of the stock. The DTCC and it's member's abuse this system by allowing the update to not happen, causing "failure to delivers", and thereby GME's naked shorting.
DRS takes the stock from the DTCC and places you as the actual owner, not the beneficiary of the stock in someone else's hand. In doing so, the DTCC has less plausible deniability in allowing naked shorting, and if the combined DRS, insiders, and institutional shares near 100%, effectively create a bank run on the DTCC.