So this is the right time to ensure that like risks are subject to like regulatory outcomes and like disclosure so as to help investors distinguish between genuine, responsible innovation and the false allure of seemingly easy returns that obscures significant risk.
This is the right time to establish which crypto activities are permissible for regulated entities and under what constraints so that spillovers to the core financial system remain well contained. Insights from Recent Turbulence Several important insights have emerged from the recent turbulence in the cryptofinance ecosystem. First, volatility in financial markets has provided important information about crypto’s performance as an asset class.