© Reuters. Representations of cryptocurrencies are seen in this illustration, August 10, 2022. REUTERS/Dado Ruvic/Illustration
(Reuters) – Michael Barr, the Federal Reserve’s top regulatory official, signaled on Monday that stiffer oversight of cryptocurrency is in the offing, after the collapse last week of crypto exchange FTX that sent shock wages through the industry.
Crypto-asset-related activity “requires effective oversight that includes safeguards to ensure that crypto companies are subject to similar regulatory safeguards as other financial services providers,” Barr said in written testimony released Monday ahead of an appearance at the Senate Banking committee Tuesday, his first before Congress since assuming the role of Fed vice chair for supervision. “We do not want to stifle innovation, but when regulation is lax or behind the curve, it can facilitate risk taking and a race to the bottom that puts consumers, businesses, and the economy in danger and discredits new products and services with consumers and investors.”
(Reporting Ann Saphir and Lindsay (NYSE:) Dunsmuir; Editing by Leslie Adler)
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