Cryptocurrencies Should Be Regulated, Says Federal Reserve Vice Chair Lael Brainard

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Lael Brainard Vice Chair of the Federal Reserve
Lael Brainard Vice Chair of the Federal Reserve

Federal Reserve Vice Chair Lael Brainard has joined the list of officials asking to regulate cryptocurrencies before the industry becomes a wider danger.

“Innovation has the potential to make financial services faster, cheaper, and more inclusive, and to do so in ways that are native to the digital ecosystem,” she said in a speech at a Bank of England conference in London. “It is important that the foundations for sound regulation of the crypto-financial system be established now before the crypto ecosystem becomes so large or interconnected that it might pose risks to the stability of the broader financial system.”

The lack of regulation has been burdensome for the crypto industry; businesses involved with cryptos are limited due to unclear regulatory parameters.

Following this year’s crypto winter, the price of bitcoin plummeted 70% from its November all-time high of $68,982.20. Still, U.S. regulators continue to call attention to the industry’s potential, growth, and reach, as well as the potential consequences of not having a clear framework for it.