U.S. policymakers have been scrambling to develop a regulatory framework for crypto to protect the financial system. However, Fed governor Lisa Cook thinks that new regulations are unnecessary.
She based this premise on the fact that the FTX collapse did not affect the banking system. Speaking at an event on Nov. 30, Cook said that the failure of several digital asset platforms had not impacted the broader financial system.
This is proof that regulators have the tools they need to prevent spillover from issues in the crypto and stablecoin markets, she added.
“Because we haven’t seen the crypto crisis lead, thus far, to a financial crisis, that says that the regular banking regulations — regular examinations, examiners asking questions about this potential intersection between crypto and banking activities — those actually have stood up,”
No Crypto Regulations Required
There has been no run on traditional banks in the…
