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The US Federal Reserve believes that US regulators have a comprehensive set of tools to prevent the problems of the virtual digital asset market from spilling over into the traditional financial system.
Fed Board member Lisa Cook said that the agency does not see crypto as a threat to the traditional financial system and does not consider developing new rules for crypto regulation an urgent task. The official is confident that regulators need to focus on effective implementation and compliance with existing rules.
The failures of several large digital asset platforms, and in particular the collapse of the FTX cryptocurrency exchange, did not affect the banking industry and did not affect the US financial system, the board member said. This just confirms the thesis that the regulatory authorities have all the tools to stop the problem.
Lisa Cook emphasized that the crypto industry is only a small part of global finance, with its total market capitalization of about $900 billion. At the same time, not a single crypto crisis or the potential intersection of cryptocurrency and banking activities has provoked a crisis in the traditional financial market of any country.
Earlier, US Federal Reserve Chairman Jerome Powell stated the need to develop proper regulation of DeFi due to the conflict of interests of this sector of the economy with traditional finance.
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