Additionally, systemic risks would arise if there is broad-based adoption and the industry is not sufficiently regulated. In fact, there has already been rampant consumer fraud in the cryptocurrency industry. “It must be recognized that cryptocurrencies pose the same or similar risks and raise the same or similar consumer protection issues as those of the traditional financial system.

‘Decentralized’ seems to be a euphemism for ‘out of the government’s reach’ and ‘unregulated,’ both of which are negatives when it comes to consumer protections and mitigating risks to the financial system. However, as discussed in the fact sheet, it is unclear that there truly are any benefits and that any possible true benefits outweigh the risks and consumer protection issues. “Cryptocurrencies, and the ‘DeFi’ ecosystem associated with them, potentially can offer a means for greater financial inclusion and the provision of faster, easier, and cheaper financial products and services. The promises of crypto to improve financial inclusion, products and services have yet to be realized, and yet the risks and consumer protection issues are very real and experienced every day by hardworking Americans. “Over the last couple years, the size of the cryptocurrency industry has grown massively, as has the attention given to it from the public, financial markets and institutions, lawmakers, and regulatory agencies. WASHINGTON, D.C.- Phillip Basil, Director of Banking Policy at Better Markets, issued the following statement around today’s release of Better Markets Fact Sheet on Cryptocurrencies:

The next big thing after bitcoin