PANews reported on December 7 that according to Jinshi, former New York Fed President Bill Dudley said that if the Trump administration really wants to support the emerging cryptocurrency industry, it should formulate a set of laws and regulations to allow it to develop and operate safely. For example, ensure that stablecoins are fully backed by deposits or short-term Treasury bills at the Federal Reserve. Define through legislation whether tokens are currencies or securities, and who regulates them. Formulate rules to protect consumers and prohibit their use for criminal activities such as terrorist financing or illegal drug sales.
Crypto has the potential to improve the financial system—for example, by making it easier and cheaper for people to trade financial assets, or by making it easier for immigrants to send money back home to their families. However, without strong safeguards, fraud and abuse will persist, undermining the trust needed to build such benefits.
