Cryptocurrencies
Fed’s Powell Says There’s ‘Real Need’ for Better Crypto Regulation
- Reiterates Fed’s study of digital dollar will take some time
- Fed chief speaks on panel at Banque de France conference
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Federal Reserve Chair Jerome Powell called for better regulation of cryptocurrencies and said the fact that the industry’s shakeout failed to cause broader financial turmoil may not be the case in the future.
Global increases in interest rates exposed “significant structural issues in the DeFi ecosystem,” Powell said Tuesday during a panel discussion on digital finance hosted by the Banque de France, referring to decentralized finance. “The good news, I suppose, is that the interaction -- from a financial stability standpoint -- the interaction between the DeFi ecosystem and the traditional banking system and traditional financial system is not that large at this point.”