Fed Vice Chair Lael Brainard said crypto has the same risks as traditional finance but some situations that are different will need new regulation. HeleneBraunn reports
Federal Reserve Vice Chair Lael Brainard said the cryptocurrency market bears similar risks to traditional finance, but will need new regulations for situations not covered by existing laws.
Brainard is leading the central bank’s exploration of a digital U.S. dollar, and her role as the No. 2 person at the Fed makes her opinions on crypto quite significant. Brainard’s latest remarks echoed herthat the sector needs to meet the same safety standard as traditional finance in order to prevent it from becoming a threat to the broader financial system.
“Stablecoins is one of those areas that I think has the most potential for risk if not properly regulated and of course those risks can easily spill into the main core financial system because of the runnable nature of stablecoins,” she said.
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