CFTC Commissioner: "The development of the crypto industry threatens the stability of the financial system"

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CFTC Commissioner Christy Goldsmith Romeronoted that the collapse of the Terra ecosystem had significant consequences for the cryptocurrency industry, and this carries risks for the financial system as a whole.

According to Christy Goldsmith RomeroGoldsmith Romero), the consequences of the Terra collapse for the cryptocurrency industry were comparable to the 2008 crisis for the traditional financial industry. But as the connection between cryptocurrency markets and traditional finance grows stronger, turmoil in digital asset markets can impact overall financial stability.

“The digital asset market remains relativelysmall, so the level of risk to the financial system that could arise in the event of a large shock is limited. But this may change in the near future, especially given the growing interest in crypto assets from representatives of the traditional finance sector,” the CFTC commissioner noted at the International Swaps and Derivatives Association (ISDA) forum.

Romero is confident that pension funds should notinvest in digital assets so that citizens are protected from the risks of the cryptocurrency industry. At the same time, interest in Bitcoin and other crypto-assets on the part of American pension funds is constantly growing.

At the same time, Romero called on the American authoritiesdo not rush into strict regulation of the cryptocurrency industry. She believes that risks must be dealt with as they arise. One way to do this, in her opinion, could be “providing additional powers to the CFTC.”

US Commodity Futures Trading Commission(CFTC) has repeatedly stated its ambitions to regulate the US cryptocurrency industry. According to the regulator, cryptocurrencies are inherently a commodity that falls under the jurisdiction of the department.