December 8, 2023

The US Federal Reserve considers the current crypto industry regulation measures sufficient

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The US Federal Reserve considers the current measures to regulate the crypto industry sufficient

At the US Federal ReserveWe are confident that American regulators have a comprehensive set of tools to prevent the spread of problems in the virtual digital asset market to the traditional financial system.

Federal Reserve Board Member Lisa CookCook) stated that the agency does not see cryptocurrency as a threat to the traditional financial system and does not consider the development of new rules for crypto regulation to be an urgent task. The official believes that regulators need to focus on effectively implementing and enforcing existing rules.

Examples of failures in the operation of several largeplatforms of digital assets and in particular the collapse of the FTX cryptocurrency exchange did not affect the banking sector and did not affect the US financial system, the board member believes. This just confirms the thesis that regulatory authorities have all the tools to stop the problem.

Lisa Cook emphasized that the crypto industryaccounts for only a small part of global finance, with a total market capitalization of about $900 billion. However, not a single crypto crisis or potential intersection of cryptocurrency and banking activities has provoked a crisis in the traditional financial market of any country.

Earlier, Chairman of the US Federal Reserve System (FRS) Jerome Powell said
about the need to develop proper regulation of DeFi due to the conflict of interests of this sector of the economy with traditional finance.