Commissioner Christy Goldsmith Romero of the U.S. Commodity Futures Trading Commission (CFTC) said. While the cryptocurrency industry is only a small part of the overall U.S. financial system, the growing interest from traditional financial firms should draw regulators’ attention to the dangerous risks looming.
In the future, if there is a greater correlation between the cryptocurrency industry and traditional financial players performing key market functions, financial stability risks will increase and may rise to the level of systemic risk.
Goldsmith Romero, chief member of the CFTC’s Technical Advisory Committee, said that the cryptocurrency industry, as other U.S. regulators currently see it, resembles certain financial elements prior to the 2008 global financial crisis.
Cryptocurrencies are supposed to be free from the traditional financial system and all its fragility and fragility. This spring, however, unregulated crypto markets exposed vulnerabilities to traditional finance-like financial stability risks that were themes of the 2008 financial crisis.