Fed nominee, Michael Barr gives opinion about the government agency potential
He said, when the government want to releasing a central bank,
There still an issue that required a lot more thought and study
Michael Barr is a law professor and former advisory board member of Ripple Labs
He is the one who United States President Joe Biden’s pick for vice chair for supervision at the Federal Reserve, called for U.S. lawmakers
He will responsible to regulate Stablecoins in an effort to address financial stability risks.
In a confirmation hearing before the Senate Banking Committee on Thursday,
Barr said innovative technologies including cryptocurrencies had both good and bad sides,
It will have some potential for upside in terms of economic benefit
But one day it also have some significant risks
Citing the need for a regulatory framework on Stablecoins to prevent the risk of runs.
According to Barr, “other agencies” within the U.S. government were responsible for addressing investor protection around cryptocurrencies.
In attendance at the same hearing were prospective commissioners for the Securities
And Exchange Commission — Jaime Lizárraga and Mark Uyeda — who, if confirmed, will serve under chair Gary Gensler.
Then, responding the questioning from Massachusetts Senator Elizabeth Warren at the hearing,
Barr confirmed that he will not work in “any financial services company”
Potentially having assets under the Federal Reserve’s purview for four years following his prospective time at the government agency.
Warren cited the recent market volatility, which included TerraUSD (UST)
Depegging from the dollar and then attacked unnamed celebrities for endorsing certain crypto projects.
Warren also said that any investment involves risk — that’s how markets work.
And added, a market without rules is theft,
Right now regular investors in Stablecoins
Crypto aren’t getting the baseline protections available in other financial markets.
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