Fed Governor: Institutions Trapped in ‘Supervisory Void’ Due to Digital Assets Uncertainty

Uncertainty over Digital Assets Traps Institutions in Supervisory Void

The uncertainty surrounding digital assets has created a void in terms of supervision for institutions. This has been highlighted by Federal Reserve Governor Lael Brainard, who believes that there is a need for a regulatory framework that can provide clarity and certainty for institutions.

Brainard has noted that the current lack of regulatory clarity and certainty has created a “supervisory void” for institutions engaging in digital asset activities. She believes that this void has led to a lack of investor protection, heightened risk of money laundering and terrorist financing, and a lack of market integrity.

Brainard has also highlighted the need for a comprehensive regulatory framework that can provide clarity and certainty to institutions engaging in digital asset activities. She believes that this framework should include principles-based standards that promote safety and soundness, consumer protection, and market integrity.

The uncertainty surrounding digital assets has created a difficult environment for institutions. Brainard believes that a comprehensive regulatory framework is needed to provide clarity and certainty to institutions engaging in digital asset activities.

Lael Brainard’s Comments on Digital Assets

Federal Reserve Governor Lael Brainard has expressed her concern about the lack of regulatory clarity and consistency for digital assets. She believes that the uncertainty has trapped institutions in a ‘supervisory void’ and that a regulatory framework is needed to provide clarity and certainty for institutions.

Brainard also believes that a consistent approach to digital assets across jurisdictions is necessary. She has called on international regulatory bodies to work together to develop a consistent approach to digital assets and to ensure that the same standards are applied across the globe.

Brainard has also argued that digital assets should be regulated in a way that is consistent with the existing regulatory framework for other financial assets. This would ensure that the same rules and regulations apply to digital assets as they do to other financial assets.

Brainard’s comments on digital assets have been welcomed by many in the industry who believe that a consistent approach to digital assets is necessary in order to ensure that the industry can operate effectively and safely.