Crypto Activities Cause a Number of Significant Issues, According to the Federal Reserve Governor
Federal Reserve governor Michelle W. Bowman has admitted that despite growth, cryptocurrencies pose problems, especially in relation to the banking sector. Cryptocurrencies pose some problems and the regulatory outlook should be ready to absorb the emerging technology, according to Bowell. The governor, however, stressed that the fast-evolving technology around cryptocurrencies can make it challenging to implement some rules. For example, Bowell noted that, in addition to the ambiguity of the law, challenges arise when financial sector stakeholders lack regulatory experience to account for crypto assets.
“Another area where regulation and supervision continues to evolve is around banks engaging in crypto-asset activities. These activities raise a number of significant issues. When I think about the evolution of supervision and regulation of these activities, I ask myself whether the rules are clear in the current rapidly evolving environment and whether the rules as they evolve are serving a legitimate prudential purpose,” said Bowell.
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