CFTC Commissioner Christy Goldsmith Romero noted that the collapse of the Terra ecosystem had significant consequences for the cryptocurrency industry, and this carries risks for the financial system as a whole.
According to Christy Goldsmith Romero, the impact of Terra’s collapse on the cryptocurrency industry was comparable to the 2008 crisis on the traditional financial industry. But as the link between crypto markets and traditional finance grows stronger, turmoil in digital asset markets could affect overall financial stability.
“The digital asset market remains relatively small, so the level of risk to the financial system that could arise in the event of a large shock is organic. But this may change in the near future, especially given the growing interest in crypto assets from representatives of traditional finance,” the CFTC commissioner said at the forum of the International Swaps and Derivatives Association (ISDA).
Romero believes that pension funds should not invest in digital assets so that citizens are protected from the risks of the cryptocurrency industry. At the same time, interest in bitcoin and other crypto assets from American pension funds is constantly growing.
At the same time, Romero urged the US authorities not to rush into strict regulation of the cryptocurrency industry. She believes that risks need to be addressed as they arise. One of the ways of such a struggle, in her opinion, could be “granting additional powers to the CFTC.”
The US Commodity Futures Trading Commission (CFTC) has repeatedly stated its ambition to regulate the US cryptocurrency industry. According to the regulator, cryptocurrencies are inherently a commodity that falls under the jurisdiction of the agency.
Source: Bits
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