Former FDIC Chairwoman Says Federal Regulatory Framework For Crypto Is A Must
Ex-Chairwoman of the Federal Deposit Insurance Corporation (FDIC), Sheila Bair explicitly shared her thoughts on the crypto sphere along with the different measures that must be taken. She was a spokesperson at Yahoo’s All-Markets Summit, which took place Thursday, September 20, 2018.
As per CCN’s report, Bair spoke in terms of regulation, the need to differentiate cryptocurrencies from blockchain technology, and the lack of effort from every party involved.
Time For Congress To Do Its Part!
Bair seems to be satisfied with the works of the US Securities and Exchange Commission (SEC) as well as the Commodity Futures Trading Commission (CFTC), especially when it comes to the regulation aspects of the digital asset. However, she feels the lack of effort on Congress’ part needs to be addressed. In particular, she believes that “Congress needs to step in with some sort of federal regulatory framework for the marketing, trading, and selling of these assets.”
Potential Design For Federal Regulatory Framework As Per Bair
Focusing mainly on regulation, Bair believes it would be ideal to implement the same regulation compared to that of gold. She further noted other options, which potentially could include “commodities or a securities-and-equity model”. Another point she made in terms of a regulatory design is that “some type of bifurcated system” might be needed depending on the actual purpose behind Initial Coin Offerings (ICOs).
Time To Rid Crypto Market Of Corruption And Manipulation
Bair, like many crypto fanatics and leaders, sees regulations as a must, namely to prevent illegal activities such as scams, hacks, theft, terrorist-funding and so on from taking place. She trusts that a “regulated trading venue with trading reporting that have robust controls against manipulation in this concentrated market [is needed].”
While she is aware that there are some digital assets that abide by some regulatory framework, the fact that they are only considered “money transmitters” limits its usefulness, adding that it is similar to “forcing a round peg into a square hole [which] just doesn’t work.”