Fed official Michael Barr argued that crypto activities should be regulated in a manner similar to traditional banking activities.
Fed Supervisory Vice President Michael Barr said that the crypto industry needs supervision just like in the traditional banking industry.
Crypto Statement From Fed Official Barr
Barr, who previously served as a consultant at Ripple Labs, made a statement about the crypto sector for the first time since he took office at the Fed. Barr argued that crypto activities should be regulated like traditional banking activities.
Speaking at the Brookin Institute event in Washington, the Fed official said that they will work with bank regulators to oversee crypto activities. Appointed by US President Joe Biden, Barr is expected to take a tough stance on Wall Street banks.
Barr said:
“Regardless of the technology used for the operation, we plan to work with other bank regulators to ensure good regulation of cryptocurrencies within banks, subject to the same risk, same activity and same regulation principle.
We want to make sure that the crypto activities of the banks we audit are subject to the necessary safeguards that protect the security of the banking system as well as their customers.”
Barr stressed that the stablecoin issue is also “a priority.”
“Congress should work quickly to bring a regulatory framework for stablecoins, especially those designed as payment instruments.”
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