The explosion of curiosity in cryptocurrencies and the implosion of cryptocurrency change FTX shine a highlight on the truth that at present’s regulatory equipment is ill-equipped to supervise this new monetary know-how. The Securities and Change Fee, the Commodity Futures Buying and selling Fee, the Federal Deposit Insurance coverage Company, the comptroller of the forex, and the Federal Reserve are all wrestling with how finest to supervise crypto. A number of proposals are circulating in Congress. One camp argues that the dangers to shoppers and to monetary stability demand a brand new rulebook. One other argues that regulating crypto would give it legitimacy and that it will be finest to go away it alone.
On December 20, the Hutchins Middle on Fiscal and Financial Coverage and the Middle on Regulation and Markets hosted a digital debate on this well timed challenge. Peter Conti-Brown of Penn Wharton and a nonresident fellow in Financial Research argued for regulation, and Stephen Cecchetti of Brandeis Worldwide Enterprise Faculty argued in opposition to.