The Governor of the United States Federal Reserve Board Christopher Waller informed an audience at the SNB-CIF Conference on Cryptoassets and Financial Innovation in Zurich that crypto regulation was needed to ensure that the ecosystem of crypto remained open to the public.
Most of the financial intermediaries could definitely help manage their risks for new crypto users, but could definitely not eliminate them, and most of the recent financial products would need a whole boost of public confidence in order to survive.
The banking official went on to use quite a few historical examples that would show the relationship between regulation, technical innovation, and amassing of fortunes. Waller mentioned that new technology could mean that some of the newer fortunes were made- even though others were lost.
Crypto Regulation- Is It A Necessity?
Waller also stated that most experienced investors also have the idea of how to operate in most of the unregulated marketplaces- and may not have any requirement for crypto regulation. He then went on to point toward a recent survey conducted by the Federal Reserve that highlighted that even with the explosive crypto-assets in the last few years, only 12% of the adults in America own crypto, and 99% of them have been holding on to it for investment purposes.
Nevertheless, most of the intermediaries in the financial market could possibly be looking at crypto regulation because most of the new users seem to be having negative experiences with crypto and that could lead to them entering into a dispute. Waller explained that when investors started losing out on their life savings, there were multiple demands for collection action.
These demands could lead to the socialization of individual losses, which would lead to calls for customer reimbursement. And these would all finally lead to an increased demand for crypto regulation.
