US Federal Reserve (Fed) Vice Chair Lael Brainard stated that the cryptocurrency market needs robust regulation

Speaking at a conference organized by the Bank of England, Brainard made statements on crypto assets and decentralized finance.

Stating that the recent volatility has revealed serious vulnerabilities in the crypto financial system, Brainard stated that the crypto financial system has become susceptible to risks familiar from traditional finance.

“It is important to lay the foundations for robust regulation of the crypto financial system now, before the crypto ecosystem becomes so large or interconnected that it poses a risk to the stability of the broader financial system,” Brainard said.

Stating that strong regulations will help investors build a resilient digital local financial infrastructure, Brainard emphasized that it is important for regulators to work together domestically and abroad to maintain a stable financial system and address those who try to evade legislation.