Monday, December 11, 2023

If crypto losses continue, situation could become morally intolerable: Fed Governor.

Christopher Waller, the Federal Reserve Governor, warned that if crypto investors continue to make losses on a large scale, it could become morally intolerable. This could occur, especially, if investors lack sufficient knowledge and lose all their money. Most losses have been due to poor due diligence, poor management practices, and poor financial advice.

Walker believes that if the losses emerge as seen with the Terra ecosystem, there will be demand for swift regulations. Speaking at the SNB-CIF Conference on Cryptoassets and Financial Innovation in Switzerland, the Governor recommended action be taken.

He highlighted that there is another possible outcome when losses become widespread. The losses become practically, politically, or morally intolerable. This happens when everyday investors start losing their life savings for no reason at all, except just wanting to participate in the hot market. As such, demand for collective action can mount quickly.

The Fed Governor says better regulation is needed for the fast-growing crypto sector, not only to help high net worth investors but everyone else. He believes society has the urge to have regulations governing new and poorly understood markets. Walked brushed off established crypto participants objecting to regulations. He said that although it may be seen as counterproductive, driving up costs and stifling innovation, regulation is still very much necessary. Walker said crypto regulation should concentrate more on educating retail investors.

Investors facing losses find it difficult to fight for their rights, thus the need for government support. Earlier this year, US President Joe Biden had signed an executive order for the crypto sector – designing measures for the development of digital assets.

Cryptured Team
Cryptured Team
The writers team at is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.

Most Popular