{"id":75372,"date":"2023-03-10T20:04:19","date_gmt":"2023-03-10T18:04:19","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=75372"},"modified":"2025-09-10T11:13:38","modified_gmt":"2025-09-10T08:13:38","slug":"fed-weighs-creation-of-expert-group-for-the-crypto-industry","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/fed-weighs-creation-of-expert-group-for-the-crypto-industry\/","title":{"rendered":"Fed weighs creation of expert group for the crypto industry"},"content":{"rendered":"<p>The United States Federal Reserve (the Fed) intends to form a group of experts focused on the cryptocurrency industry. This was announced by Michael Barr, the Fed&#8217;s deputy chair for supervision.<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-\u0432\u0441\u0442\u0430\u0432\u0438\u0442\u044c-\u043e\u0431\u0440\u0430\u0431\u043e\u0442\u0447\u0438\u043a wp-block-embed-\u0432\u0441\u0442\u0430\u0432\u0438\u0442\u044c-\u043e\u0431\u0440\u0430\u0431\u043e\u0442\u0447\u0438\u043a wp-embed-aspect-16-9 wp-has-aspect-ratio\">\n<div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Fed Vice Chair Michael S. Barr on crypto activities\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/1-JgMd1HtOE?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div>\n<\/figure>\n<p>Speaking at the Peterson Institute for International Economics in Washington, Barr acknowledged that digital assets could have a transformative impact on the financial system. However, he noted that \u201cthe benefits of innovation can be realised only with appropriate guardrails.\u201d<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cInnovations always arrive quickly, but consumers need time to realise that they can both earn money and lose money on new financial products,\u201d Barr said.<\/p>\n<\/blockquote>\n<p>According to him, the group will help the Fed draw lessons from new developments and monitor the industry\u2019s evolution. He added that regulation should be a consultative process that ensures a balance between excessive and insufficient oversight.<\/p>\n<p>Barr named <a href=\"https:\/\/u1f987.com\/en\/news\/what-are-stablecoins\">stablecoins<\/a> as a concern, arguing that the assets they are backed by can be illiquid:<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThis mismatch of value and liquidity \u2014 a recipe for a classic <span data-descr=\"the situation in which customers begin withdrawing their deposits\" class=\"old_tooltip\">bank run<\/span>.\u201d<\/p>\n<\/blockquote>\n<p>Barr did not rule out that, in the absence of regulation, any broad rollout of stablecoins could threaten the economy at large.<\/p>\n<p>In response, Custodia CEO Caitlin Long (formerly Avanti) pointed to liquidity problems at Silicon Valley Bank (SVB).<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">FRIENDLY REMINDER that, right as the panic was happening in Silicon Valley, the Fed\u2019s Vice Chair for Supervision Barr said in a speech: &#8220;The banks we regulate, in contrast, are well protected from bank runs thru a robust array of supervisory requirements.&#8221; <a href=\"https:\/\/t.co\/FpPl2Qlk7x\">https:\/\/t.co\/FpPl2Qlk7x<\/a><\/p>\n<p>\u2014 Caitlin Long ?\u26a1\ufe0f? (@CaitlinLong_) <a href=\"https:\/\/twitter.com\/CaitlinLong_\/status\/1634026946249232384?ref_src=twsrc%5Etfw\">March 10, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cA friendly reminder that, at the moment Silicon Valley was in a panic, the Fed&#8217;s vice chair for supervision Barr said in his remarks: \u2018Banks that we regulate are, by contrast, well protected from bank runs thanks to a robust set of supervisory requirements,\u2019\u201d Long wrote.<\/p>\n<\/blockquote>\n<p>On March 9, SVB&#8217;s shares fell more than 60%, and its market value dropped by $10 billion after the institution announced an issuance of $1.75 billion in securities. In this context, five venture-capital firms focused on digital assets advised their portfolio companies <a href=\"https:\/\/u1f987.com\/en\/news\/venture-capital-investors-distance-themselves-from-silicon-valley-bank-amid-liquidity-concerns\">withdraw funds<\/a> from Silicon Valley Bank.<\/p>\n<p>On March 10, California\u2019s Department of Financial Protection and Innovation closed SVB.<\/p>\n<p>Earlier, a number of crypto firms <a href=\"https:\/\/u1f987.com\/en\/news\/crypto-firms-distance-themselves-from-silvergate-amid-bankruptcy-rumors\">distanced themselves<\/a> from Silvergate Bank amid bankruptcy rumours.<\/p>\n<p>Silvergate Capital Corporation <a href=\"https:\/\/u1f987.com\/en\/news\/silvergate-to-liquidate-silvergate-bank\">said<\/a> it planned to liquidate its subsidiary. The plan provides for full reimbursement of deposits.<\/p>\n<p>In February, the Fed <a href=\"https:\/\/u1f987.com\/en\/news\/fed-warns-banks-of-liquidity-risks-tied-to-crypto-firms\">warned banks<\/a> about liquidity risks associated with crypto firms.<\/p>\n<p>In March, four Republican senators, in a letter to supervisory agencies, said that tightening regulation of banks serving the industry <a href=\"https:\/\/u1f987.com\/en\/news\/us-senators-urge-regulators-not-to-punish-the-entire-crypto-industry\">could punishes the entire sector<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. Federal Reserve (the Fed) intends to form a group of experts focused on the cryptocurrency industry. This was announced by Michael Barr, the Fed&#8217;s deputy chair for supervision.<\/p>\n","protected":false},"author":1,"featured_media":75373,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1249,36],"class_list":["post-75372","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-federal-reserve-system","tag-regulation"],"aioseo_notices":[],"amp_enabled":true,"views":"20","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/75372","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=75372"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/75372\/revisions"}],"predecessor-version":[{"id":75374,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/75372\/revisions\/75374"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/75373"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=75372"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=75372"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=75372"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}