Fed Chair Powell Sees ‘Real Need’ For More Appropriate Defy Regulation With ‘Very Significant Structural Issues’ – Regulation Bitcoin News

Federal Reserve Chairman Jerome Powell emphasized that decentralized finance (defi) has “very significant structural issues” and that there is a “real need” for more appropriate regulation of the defi ecosystem.

Fed Chairman Jerome Powell on Defy Rules

Federal Reserve Chairman Jerome Powell spoke on Decentralized Finance (defi) Tuesday at a forum on digital finance organized by the Banque de France.

“What we’re seeing around the world is the normalization of monetary policy,” Powell began. “All it did was reveal what we have long pointed to as significant structural issues in the ecology of problems and conflicts of interest.” He emphasized.

In the Diffie ecosystem, there are these very significant structural issues with transparency – lack of transparency.

“The good news is… in terms of financial stability, the interaction between the DeFi ecosystem and the traditional banking system and the traditional financial system is not that big at this point. So we got to see Diffie’s summer. It did not have significant effects on the banking system and broader financial stability,” Powell outlined.

“It’s a good thing,” he exclaimed. “I think it will show the weaknesses and the work that needs to be done carefully and carefully around the guidelines and it will give us some time.”

However, the Federal Reserve chairman warned that the situation “will not last forever”. “Ultimately, that’s not a stable balance and we have to be very careful … how crypto activities get around regulation,” he explains:

Either way… as Diffie expands and begins to touch more retail customers, the appropriate regulation is in place.

Christine Lagarde, President of the European Central Bank, and Agustin Carstens, General Manager of the Bank for International Settlements, participated in the discussion. Both agree with Powell and similarly emphasize the need for proper management of ecosystems.

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What do you think about Fed Chairman Jerome Powell’s comments about the defi rule? Let us know in the comments section below.

Kevin Helms

Kevin, an Austrian economics student, discovered Bitcoin in 2011 and has been an evangelist ever since. His interests are in Bitcoin security, open source systems, network effects and the intersection between economics and cryptography.

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