Federal Reserve Chairman Jerome Powell emphasizes a 'real need' for more appropriate defi regulation, citing 'very significant structural issues.' crypto cryptocurrency decentralizedfinance
Fed Chair Powell Sees 'Real Need' for More Appropriate Defi Regulation Citing 'Very Significant Structural Issues'
“The monetary policy normalization that we’re seeing all over the world,” Powell began. “All it did was simply reveal what we’ve long pointed out as significant structural issues in the defi ecosystem and conflict of interest.” He stressed: “The good news, I suppose, is that … from the financial stability standpoint, the interaction between the defi ecosystem and the traditional banking system and the traditional finance system is not that large at this point. So we were able to witness the defi winter. It didn’t have significant effects on the banking system and broader financial stability,” Powell detailed.
However, the Federal Reserve chairman warned that the situation he just described “will not persist indefinitely.” He clarified that “Ultimately that’s not a stable equilibrium and we need to be very careful about … how crypto activities are taken within the regulatory perimeter,” elaborating: