• News
    • Bitcoin
    • Altcoins
    • Blockchain
    • DeFi
    • Regulation
    • Scams
  • NFT
  • Metaverse
  • Analysis
  • Learn
  • Videos
  • Blogs
  • Market Cap
  • Shop
What's Hot

ZachXBT reveals Coinbase users lost another $45M in a week to ongoing social engineering scams

2025-05-07

Bitcoin Won’t Be Fine, Bitcoin Will Be Fine

2025-05-07

Bitcoin PUMPS Ahead of FOMC Press Conference

2025-05-06

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

Facebook Twitter Instagram
Crypto Investor News Network
  • News
    • Bitcoin
    • Altcoins
    • Blockchain
    • DeFi
    • Regulation
    • Scams
  • NFT

    All Eyes on Art: Upcoming Collections to Watch the Week of February 4

    2025-02-05

    Creator of rabbit AI assistant has hidden NFT past

    2024-05-02

    Ethereum tops daily NFT sales at US$7 mln, ends weakest month of 2024

    2024-05-02

    Top NFT Airdrops and Giveaways for May 2024

    2024-05-02

    Casio Launches NFT Collection Celebrating 50th Anniversary

    2024-05-01
  • Metaverse

    Shib: The Metaverse – Part of the Expanding Shiba Inu Ecosystem

    2025-01-03

    Experience to Earn: Everdome’s Metaverse Frontier

    2024-12-30

    Beyond Bots: Meta Motivo and the Dawn of Humanlike Digital Life

    2024-12-13

    Exploring NetVRk: What Is Behind This AI-Driven Virtual Universe?

    2024-10-28

    Council of Europe Highlights Metaverse’s Impact on Privacy and Democracy

    2024-09-05
  • Analysis

    Crypto Exchange Coinbase Lists New DeFi Altcoin Project Built on Base Blockchain

    2023-12-13

    Ethereum Price Bears Keep Pushing, Why Decline Isn’t Over Yet

    2023-12-13

    Trader Bullish on Cosmos (ATOM), Says One Dogecoin Rival Setting Up for Next Leg Up – Here’s His Outlook

    2023-12-13

    AVAX Price Pumps 50% and Dumps 15%, Why Uptrend Is Still Strong

    2023-12-13

    Top Trader Predicts Parabolic Rally for Solana Competitor – Here’s His Upside Target

    2023-12-13
  • Learn

    What is a Layer-1 (L1) Blockchain? L1 Problems & Future

    2025-05-03

    What is a Layer-2 (L2) Blockchain Solution? Types & Problems They Solve

    2025-05-02

    What Is a Layer-0 Blockchain Protocol?

    2025-05-02

    What They Are and What They Are For

    2025-04-17

    What It is & Why it Matters

    2025-04-16
  • Videos

    Bitcoin Won’t Be Fine, Bitcoin Will Be Fine

    2025-05-07

    Bitcoin PUMPS Ahead of FOMC Press Conference

    2025-05-06

    Bitcoin Core Removes The Mask

    2025-05-06

    Next CME Gap For Bitcoin to Fill (GET READY!!)

    2025-05-05

    How To Run A BITCOIN NODE: Knots on Desktop, Umbrel and Start9

    2025-05-05
  • Blogs
  • Market Cap
  • Shop
Facebook Twitter Instagram TikTok
Crypto Investor News Network
Home»Regulation»US Fed to create new crypto team amid concerns about unregulated stablecoins
Regulation

US Fed to create new crypto team amid concerns about unregulated stablecoins

2023-03-11No Comments3 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter LinkedIn Pinterest Email

The United States Federal Reserve is set to create a “specialized team of experts” to keep up with developments in the cryptocurrency industry, according to a Fed official, amid concerns from the central bank about “unregulated” stablecoins.

Speaking at the Peterson Institute for International Economics in Washington on March 9, Vice Chair for Supervision Michael Barr admitted that crypto could have a “transformative effect” on the financial system but added that “the benefits of innovation can only be realized if appropriate guardrails are in place.”

According to Barr, the new crypto team will help the Federal Reserve “learn from new developments and make sure we’re up to date on innovation in this sector.” He added:

“Innovation always comes quickly, but it takes time for consumers to become aware that they could both gain and lose money on new financial products.”

Meanwhile, Barr noted that regulation needs to be a “deliberative process” to ensure a balance is reached between over-regulation that “will stifle innovation” and under-regulation that “will allow for substantial harm to households and the financial system”

Related: Fed signals a sharp rate hike in March due to inflation — Here’s how Bitcoin traders can prepare

One subsect of crypto that Barr highlighted as a point of concern was stablecoins.

He said that the assets backing many stablecoins in circulation are illiquid, meaning that it can be difficult to liquidate them for cash when needed, arguing:

“This mismatch in value and liquidity is the recipe for a classic bank run.”

He believes that unless regulated by the Fed, any widespread adoption of stablecoins could put households, businesses and the broader economy at risk.

See also  US Tax Authority Provides Blockchain and Crypto Tracing Training to Ukrainian Law Enforcement

Caitlin Long, the CEO of Custodia Bank — which has consistently been rejected from joining the Federal Reserve System — pointed out the irony in the comments from Barr given her belief that Silvergate Bank collapsed due to liquidity issues arising from a bank run.

UM, WASN’T THE FED #Silvergate‘s REGULATOR?‍♀️
“The banks we regulate, in contrast, are well protected from bank runs thru a robust array of supervisory requirements.”–Fed Vice Chair Supervision Michael Barr, speaking this morning(!)
h/t @ByKyleCampbellhttps://t.co/7UsHDKfiaC

— Caitlin Long ⚡️ (@CaitlinLong_) March 9, 2023

Long also pointed to the current issues facing Silicon Valley Bank, whose shares plummeted after a March 8 financial update disclosed that it sold $21 billion worth of its holdings at a $1.8 billion loss, prompting fears that it was forced to sell to free up capital.

FRIENDLY REMINDER that, right as the panic was happening in Silicon Valley, the Fed’s Vice Chair for Supervision Barr said in a speech: “The banks we regulate, in contrast, are well protected from bank runs thru a robust array of supervisory requirements.”https://t.co/FpPl2Qlk7x

— Caitlin Long ⚡️ (@CaitlinLong_) March 10, 2023

concerns create Crypto Fed Stablecoins team unregulated
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

How To Pay ZERO Taxes on Crypto Gains in 2025?

2025-04-30

Crypto Lending Is BACK — And It Could Make You Filthy Rich in 2025!

2025-04-29

Crypto News: BTC $100K? Altcoin Breakout, SUI & TAO Pump, TRUMP & More

2025-04-28

Crypto Comeback 🔥 Why This Week Changed EVERYTHING

2025-04-26
Add A Comment

Leave A Reply Cancel Reply

Top Posts
Videos

🔴 Altcoins Awakening | This Week in Crypto – Nov 13, 2023

2023-11-13

Here’s what happened this week in Crypto. For the complete stories visit: https://bit.ly/47oAdHQ 00:20 Crypto…

Videos

Telegram CEO Arrest Gets Even More UNBELIEVABLE

2024-08-27

NEW SITE SALE: https://www.learningcrypto.com/early-access-saver Merch Shop: https://shop.learningcrypto.com 🕊️ FREE …

Learn About Crypto

What Are Stablecoins and How Do They Work? Types of Stablecoins

2023-08-29

intermediate The technology behind Bitcoin and Ethereum is groundbreaking and has opened up many potential…

Subscribe to Updates

Get the latest news and Update from CINN about Crypto, Metaverse and NFT.

Editors Picks

ZachXBT reveals Coinbase users lost another $45M in a week to ongoing social engineering scams

2025-05-07

Bitcoin Won’t Be Fine, Bitcoin Will Be Fine

2025-05-07

Bitcoin PUMPS Ahead of FOMC Press Conference

2025-05-06

Bitcoin Core Removes The Mask

2025-05-06
Crypto Investor News Network
Facebook Twitter Instagram TikTok
  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
  • Disclouser
© 2025 - All rights are reserved.

Type above and press Enter to search. Press Esc to cancel.

bitcoin
Bitcoin (BTC) $ 101,527.20
ethereum
Ethereum (ETH) $ 2,120.94
tether
Tether (USDT) $ 1.00
xrp
XRP (XRP) $ 2.27
bnb
BNB (BNB) $ 619.70
solana
Solana (SOL) $ 160.77
usd-coin
USDC (USDC) $ 1.00
dogecoin
Dogecoin (DOGE) $ 0.191551
cardano
Cardano (ADA) $ 0.739754
tron
TRON (TRX) $ 0.254811
bitcoin
Bitcoin (BTC) $ 101,527.20
ethereum
Ethereum (ETH) $ 2,120.94
tether
Tether (USDT) $ 1.00
xrp
XRP (XRP) $ 2.27
bnb
BNB (BNB) $ 619.70
solana
Solana (SOL) $ 160.77
usd-coin
USDC (USDC) $ 1.00
dogecoin
Dogecoin (DOGE) $ 0.191551
cardano
Cardano (ADA) $ 0.739754
tron
TRON (TRX) $ 0.254811