Reading Time
~ 2 minutes
Spread the Word

Sheila Bair, a former chair of the Federal Deposit Insurance Corporation (FDIC), says the US should develop a regulatory framework for the crypto sector from scratch.

During the CB Insights’ Future of Fintech Conference held on 21st June, the former chairman of FDIC approached the subject of cryptocurrencies and mainly about their monitoring.
Bair added that “regulators get a bad rep on this … [but] money transfer law is weird.”

We are trying to jam [cryptocurrencies] into state money transmission laws, it just doesn’t work. I think at some point, we will need a federal framework to have some type of regulatory oversight of exchanges established to trade crypto assets. They may also be securities, if there is an [initial coin offering] being used to raise equity, they need to regulate it,” she continued.

The 19th Chair of the U.S. The Federal Deposit Insurance Corporation (FDIC) believes that regulating the crypto sector is a necessary move, referring to actions that will happen in the near future. She claimed that the private sector will oblige financial institutions’ to list private virtual currencies, because “everybody hates bank account fees, the retailers hate interchange fees.”

If there is a way to get around that, I think you can see a shift [fairly] quickly,” Bair said, adding that “I do think the Fed needs to get ahead of this” as she is a Fedcoin supporter.

Sheila Bair continues to support FedCoin, arguing that the services it offers might resolve transitional issues while giving the Federal Reserve the opportunity to operate effectively with US money supply. According to her statements, compared to a financial institution demanding a 1.95 percent interest rate, Fedcoin could reduce it by 0.01 percent through savings accounts.

Notice: The information in this article and the links provided are for general information purposes only and should not constitute any financial or investment advice. We advise you to do your own research or consult a professional before making financial decisions. Please acknowledge that we are not responsible for any loss caused by any information present on this website.