The US Federal Reserve is creating a specialized team of crypto experts, according to deputy chairman
The top regulatory official at the Federal Reserve says that while cryptoassets can potentially transform the financial system, the technology still requires appropriate safeguards.
Speaking at the Peterson Institute for International Economics on Thursday, Fed Deputy Chairman Michael Barr said the central bank is improving oversight of crypto-related activities as recent incidents in the industry saw millions of people lose investments worth billions of dollars.
“In the absence of compliance, customers do not have the information they need to assess and mitigate their risks. Investors do not have the structural protection they have relied on for decades. As a result, many have fallen victim to classic cases of fraud and abuse – some aptly classified as ‘Ponzi schemes’ under a high-tech veneer.”
As it establishes security protocols for the crypto market, Barr says the central bank is assembling a team of crypto experts to ensure it is kept abreast of new developments and innovations in the sector.
“In addition to sharing what we learn with the public on an ongoing basis, we are also improving the oversight of these activities. We are creating a specialized team of experts who can help us learn from new developments and ensure we are up to date with innovation in this sector.”
He says the goal is to balance innovation and security measures that can benefit both consumers and the financial system.
“As we continue our efforts, we will work to support innovation by establishing the guardrails essential to sustainable, safe and transparent markets.”
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