Fed Vice Chair Brainard stresses the need to regulate crypto

• Regulatory guardrails will help build a resilient crypto financial system

Federal Reserve Vice Chair Lael Brainard said that the cryptocurrency industry needs to be regulated else the industry could become a broader danger to the financial system.

“It is important that the foundations for sound regulation of the crypto-financial system be established now before the crypto ecosystem becomes so large or interconnected that it might pose risks to the stability of the broader financial system,” she said in a speech at a Bank of England conference in London.

“Recent volatility has exposed serious vulnerabilities in the crypto-financial system,” she added, referring to the slump in the crypto market and the collapse of major "stablecoin" TerraUSD.