{"id":561825,"date":"2023-03-10T08:15:00","date_gmt":"2023-03-10T05:15:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/us-fed-to-create-new-crypto-team-amid-concerns-about-unregulated-stablecoins\/"},"modified":"2023-03-10T08:15:00","modified_gmt":"2023-03-10T05:15:00","slug":"us-fed-to-create-new-crypto-team-amid-concerns-about-unregulated-stablecoins","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/us-fed-to-create-new-crypto-team-amid-concerns-about-unregulated-stablecoins\/","title":{"rendered":"# US Fed to create new crypto team amid concerns about unregulated stablecoins"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a348c23b04ae\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a348c23b04ae\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/us-fed-to-create-new-crypto-team-amid-concerns-about-unregulated-stablecoins\/#%E2%80%9D_US_Fed_to_create_new_crypto_team_amid_concerns_about_unregulated_stablecoins_%E2%80%9C\" >&#8221; US Fed to create new crypto team amid concerns about unregulated stablecoins &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_US_Fed_to_create_new_crypto_team_amid_concerns_about_unregulated_stablecoins_%E2%80%9C\"><\/span>&#8221; US Fed to create new crypto team amid concerns about unregulated stablecoins &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDMvMDZkMmNjZmItNzMzMy00Yzg2LThkYjUtYjdkYWJkNzhkN2I5LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-48054ca8>The United States Federal Reserve is set to create a \u201cspecialized team of experts\u201d to keep up with developments in the cryptocurrency industry,\u00a0 according to a Fed official, amid concerns from the Fed of \u201cunregulated\u201d stablecoins.<\/p>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/youtube.com\/watch?v=1-JgMd1HtOE\">Speaking<\/a> at the Peterson Institute for International Economics in Washington on Mar. 9, Vice Chair for Supervision Michael Barr admitted that crypto could have a \u201ctransformative effect\u201d on the financial system, but added that \u201cthe benefits of innovation can only be realized if <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ropriate guardrails are in place.\u201d<\/p>\n<p><iframe loading=\"lazy\" title=\"Fed Vice Chair Michael S. Barr on crypto activities\" width=\"640\" height=\"360\" 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>According to Barr, the new crypto team will help the Federal Reserve \u201clearn from new developments and make sure we\u2019re up to date on innovation in this sector,\u201d adding: <\/p>\n<blockquote><p>\u201cInnovation always comes quickly, but it takes time for consumers to become aware that they could both gain and lose money on new financial products.\u201d<\/p><\/blockquote>\n<p>Meanwhile, Barr noted that regulation needs to be a \u201cdeliberative process\u201d to ensure a balance is reached between over-regulation which \u201cwill stifle innovation\u201d and under-regulation which \u201cwill allow for substantial harm to households and the financial system\u201d<\/p>\n<p><strong>Related: <\/strong><strong><em>Fed signals a sharp rate hike in March due to inflation \u2014 Here\u2019s how Bitcoin traders can prepare<\/em><\/strong><\/p>\n<p>One subsect of crypto that Barr highlighted as a point of concern was stablecoins. <\/p>\n<p>He suggested that the assets backing many stablecoins in circulation are illiquid, meaning that it can be difficult to liquidate them for cash when needed, arguing: <\/p>\n<blockquote><p>\u201cThis mismatch in value and liquidity is the recipe for a classic bank run.\u201d<\/p><\/blockquote>\n<p>He believes that unless regulated by the Fed, any widespread adoption of stablecoins could put households, businesses, and the broader economy at risk.<\/p>\n<p>Caitlin Long, the CEO of Custodia Bank \u2014 which has consistently been rejected from joining the Federal Reserve System \u2014 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.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">UM, WASN&#8217;T THE FED <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Silvergate?src=hash&amp;ref_src=twsrc%5Etfw\">#Silvergate<\/a>&#8216;s REGULATOR?\u200d\u2640\ufe0f<br \/>&#8220;The banks we regulate, in contrast, are well protected from bank runs thru a robust array of supervisory requirements.&#8221;&#8211;Fed Vice Chair Supervision Michael Barr, speaking this morning(!)<br \/>h\/t <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/ByKyleCampbell?ref_src=twsrc%5Etfw\">@ByKyleCampbell<\/a><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/7UsHDKfiaC\">https:\/\/t.co\/7UsHDKfiaC<\/a><\/p>\n<p>\u2014 Caitlin Long \u26a1\ufe0f (@CaitlinLong_) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CaitlinLong_\/status\/1633854894141480961?ref_src=twsrc%5Etfw\">March 9, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Long also pointed to the current issues facing Silicon Valley Bank, whose shares plummeted after a Mar. 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.<\/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 rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/FpPl2Qlk7x\">https:\/\/t.co\/FpPl2Qlk7x<\/a><\/p>\n<p>\u2014 Caitlin Long \u26a1\ufe0f (@CaitlinLong_) <a rel=\"nofollow noopener\" target=\"_blank\" 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><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/us-fed-to-create-new-crypto-team-amid-concerns-about-unregulated-stablecoins\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; US Fed to create new crypto team amid concerns about unregulated stablecoins &#8220; The United States Federal Reserve is set to create a \u201cspecialized team of experts\u201d to keep up with developments in the cryptocurrency industry,\u00a0 according to a Fed official, amid concerns from the Fed of \u201cunregulated\u201d stablecoins. Speaking at the Peterson Institute&#8230;<\/p>\n","protected":false},"author":1,"featured_media":561826,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-03\/06d2ccfb-7333-4c86-8db5-b7dabd78d7b9.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[88323,75493,71939,5069,70550,70934,67874],"class_list":["post-561825","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-financial-systems","tag-stablecoin","tag-banks","tag-economy","tag-federal-reserve","tag-regulation","tag-united-states"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/561825","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=561825"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/561825\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/561826"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=561825"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=561825"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=561825"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}