Federal Reserve Vice Chairman: New cryptocurrency regulations need to be established, stablecoins are one of the riskiest areas

Chain Catcher News, Federal Reserve Vice Chair Lael Brainard stated that the cryptocurrency market bears risks similar to those of traditional finance and that new regulations need to be developed for situations not covered by existing laws. She also reiterated the risks of stablecoins and predicted that the private sector will create more stablecoins in the future, raising questions about whether central banks should issue their own Central Bank Digital Currency (CBDC). "If not properly regulated, stablecoins are, in my opinion, one of the riskiest areas, and certainly, due to the operability of stablecoins, these risks can easily spread to the core financial system."

It is reported that Lael Brainard is currently the second-in-command at the Federal Reserve, responsible for leading the Fed's exploration of a digital dollar. Previously, she stated that the crypto industry needs to meet the same safety standards as traditional finance to prevent it from becoming a threat to the broader financial system. (CoinDesk)