Vice Chair of the U.S. Federal Reserve Announces the Formation of a “Specialized Team of Experts” on Crypto
Crypto assets have the potential to revolutionize the financial system, but the technology still lacks sufficient safeguards, according to the Federal Reserve’s chief regulator.
In a Thursday speech at the Peterson Institute for International Economics, Fed Vice Chairman Michael Barr stated that the central bank is increasing its oversight of crypto-related activities in light of recent events in the industry in which millions of investors lost billions of dollars worth of assets.
As a result of noncompliance with regulations, consumers lack access to vital data for risk assessment and management. The structural safeguards on which investors have depended for decades are no longer available. Consequently, several people have fallen victim to typical examples of fraud and abuse – some correctly categorized as “Ponzi schemes” with a high-tech veneer.”
Barr said that while the central bank builds safety standards for the crypto market, it is assembling a team of crypto specialists to keep current with the latest advancements and ideas.
In addition to continuously sharing our knowledge with the public, we are strengthening our oversight of these initiatives. To keep up with the latest innovations in this field, we are assembling a group of subject-matter experts who will serve as a resource for us to learn from.
According to him, The objective is to balance innovation and protection so that both customers and the financial system gain.
“As we go forward, we will endeavor to encourage innovation while putting in place the safeguards necessary for stable, secure, and transparent markets.”
