Top Fed official warns of ‘serious vulnerabilities’ in crypto industry

Federal Reserve vice chair Lael Brainard said recent crypto volatility has exposed “serious vulnerabilities” in an industry in need of tighter regulation. Brainard told a Bank of England conference in London that crypto is not yet “so large or so interconnected” with traditional finance to pose systemic risk but raises familiar regulatory concerns. The crypto markets have come under relentless pressure in recent weeks, with several key players including crypto hedge fund Three Arrows unravelling as a result of plunging markets. Since November’s all-time high, popular tokens like bitcoin and ether have lost roughly 70 per cent of their value. In the wake of this market crash, Brainard questioned the often-made case for cryptocurrencies acting as a hedge against inflation. Source