BETTER REGULATION OF THE FAST GROWING WORLD OF CRYPTO ASSETS
"The key issue in regulating crypto-asset is not how to protect crypto-investors; it is a way to protect all of us," Waller said in a statement prepared for the SNB-CIF Cryptoassets and Financial Innovation Conference in Zurich. .
In particular, he said, the purpose of regulation would be to "protect the public from often unstoppable pressure to meet the loss of investors with limited resources, and to reduce the spread of financial stress."
Over the past five years crypto assets have grown exponentially from a niche market with an estimated $ 14 billion to the $ 3 trillion industry.
Several high-profile collapses in the crypto world have recently led to better calls to monitor what is an unregulated market. One reason: their popularity. A recent Fed poll showed about 12% of U.S. adults who use or hold crypto currency for the past year, mainly for investment purposes. Some surveys suggest that the number of crypto users is even higher.
In March, President Joe Biden instructed the Treasury and other agencies to consider how best to regulate the industry, as well as the world's largest banks - including the Fed - to consider whether to create a central bank-based digital currency.
Waller is among those in the Fed who say they see no reason to withdraw a central bank digital currency that can compete with digital forms of privately supported funds.
On Friday he gave his reasons why those privately funded funds needed to be looked at better, despite arguments from within the industry that markets have been left behind in their machines to encourage new inventions.