The head of the FOMC considers cryptos a threat to financial stability

24.03.2022 12:28
by Artem Ustinov
1 min read

The head of the FOMC considers cryptos a threat to financial stability

Cryptocurrencies and stablecoins carry risks for the US financial system and require the development of new laws to regulate them. This is the opinion of FOMC Chairman Jerome Powell.

The head of the monetary authorities believes that transactions outside the traditional banking system should be regulated, as well as when performed by financial institutions.

Our existing regulatory frameworks were not built with a digital world in mind. Stablecoins, central bank digital currencies, […] will require changes to existing laws and regulations or even entirely new rules and frameworks.

Jerome Powell

Powell is confident that cryptocurrencies have been used for money laundering and other illegal activities. Governments must prevent this in order for digital assets to become widespread, he adds.

Author

  • Crypto analyst and practitioner trader with the law and managerial education. Active investor and crypto enthusiast. Worked as an analyst and copywriter in a brokerage company. Accompanied by DAO and NFT projects of different levels of complexity.

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