The Fed Governor Outlines Who Needs Cryptocurrency Regulation And Why There Is An Increasing Need For It?
According to Christopher Waller, seasoned investors are aware of how to survive, but losses to small investors can have far-reaching effects.
United States Federal Reserve Board Governor Christopher Waller addressed an audience at the SNB-CIF Conference on Cryptoassets and Financial Innovation in Zurich, Switzerland, that regulation is necessary to make the crypto ecosystem accessible to a wider audience. According to Waller, financial intermediaries can help new cryptocurrency users manage risk but they cannot completely eradicate it. New and rapidly expanding financial products also require public confidence to survive.
The banking official illustrated the connection between technological advancement, regulation, and the accumulation of wealth using historical examples. Some new fortunes were made, while others were destroyed, due to new technology and a lack of clear standards, Waller claimed.
Waller noted that seasoned investors are accustomed to operating in uncontrolled markets and may not require or desire regulation. He cited a recent Fed survey that revealed that only 13% of American people currently own cryptocurrency, and that the majority of those who do own it do so for investment motives.
This is despite the spectacular growth of cryptoassets in recent years
Financial market intermediaries might seek regulation because they run the risk of becoming involved in disputes with new crypto users who have a bad experience. Waller said:
“Demands for collective action can grow quickly when average investors start losing their life savings, for no reason other than wanting to participate in a booming market.”
The central banker argued that those demands might develop into calls for the socialization of specific losses, such as requests for payments to small investors who have lost money due to the collapse of the Terra (LUNC; formerly, LUNA) ecosystem. In turn, this raises the need for regulation to stop a recurrence of the problem.
To allow broad access to the crypto ecosystem, Waller concluded: “The question isn’t about what experienced users of that ecosystem want — it’s about what the rest of the public needs to have confidence in the ecosystem’s safety, and for better or worse, you can’t program confidence.”
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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The Fed Governor Outlines Who Needs Cryptocurrency Regulation And Why There Is An Increasing Need For It?
According to Christopher Waller, seasoned investors are aware of how to survive, but losses to small investors can have far-reaching effects.
United States Federal Reserve Board Governor Christopher Waller addressed an audience at the SNB-CIF Conference on Cryptoassets and Financial Innovation in Zurich, Switzerland, that regulation is necessary to make the crypto ecosystem accessible to a wider audience. According to Waller, financial intermediaries can help new cryptocurrency users manage risk but they cannot completely eradicate it. New and rapidly expanding financial products also require public confidence to survive.
The banking official illustrated the connection between technological advancement, regulation, and the accumulation of wealth using historical examples. Some new fortunes were made, while others were destroyed, due to new technology and a lack of clear standards, Waller claimed.
Waller noted that seasoned investors are accustomed to operating in uncontrolled markets and may not require or desire regulation. He cited a recent Fed survey that revealed that only 13% of American people currently own cryptocurrency, and that the majority of those who do own it do so for investment motives.
This is despite the spectacular growth of cryptoassets in recent years
Financial market intermediaries might seek regulation because they run the risk of becoming involved in disputes with new crypto users who have a bad experience. Waller said:
“Demands for collective action can grow quickly when average investors start losing their life savings, for no reason other than wanting to participate in a booming market.”
The central banker argued that those demands might develop into calls for the socialization of specific losses, such as requests for payments to small investors who have lost money due to the collapse of the Terra (LUNC; formerly, LUNA) ecosystem. In turn, this raises the need for regulation to stop a recurrence of the problem.
To allow broad access to the crypto ecosystem, Waller concluded: “The question isn’t about what experienced users of that ecosystem want — it’s about what the rest of the public needs to have confidence in the ecosystem’s safety, and for better or worse, you can’t program confidence.”
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Annie
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