Traditional finance players want new international rules to stop FTX-style conflicts of interest, but the crypto industry warns of crimping blockchain benefits
Federal Reserve Vice Chair for Supervision Michael Barr spoke at a DC Fintech Week event, noting that crypto is "unlikely to grow into money substitutes and become a viable means to pay for transactions" due to the high volatility. Plus, he explains why stablecoins could post potential risks to financial stability.
Financial-stability norms to be set out next week could seek to extend financial regulations to the crypto world - or could seek to go in a whole new direction.
The Financial Stability Oversight Council warned that cryptocurrencies could pose risks to U.S. financial stability if they “were to grow without adherence to or being paired with appropriate regulation.” CoinDesk Global Policy & Regulation Managing Editor Nikhilesh De discusses the report’s findings.
The loss of $2 trillion of crypto market cap over a period of months has “underscored the need for enhanced regulation,” the Financial Policy Committee said.