Fed Vice Chair Says Crypto Needs Regulation Now Before It Threatens Stability of Financial System: Report

Federal Reserve Vice Chair Lael Brainard says regulations need to be enacted now before the digital assets industry threatens the stability of the entire financial system. Brainard also says the volatile price of cryptocurrencies are particularly troublesome. Despite significant investor losses, the crypto financial system does not yet appear to be so large or so interconnected with the traditional financial system as to pose a systemic risk. This is the right time to establish which crypto activities are permissible for regulated entities and under what constraints so that spillovers to the core financial system remain well contained, says Brainard. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital. Source