The Federal Reserve Governor Christopher Waller has warned that if crypto investors continue making losses on a large scale, the situation could become morally intolerable.
Speaking during the SNB-CIF Conference on Cryptoassets and Financial Innovation in Switzerland, Waller noted that intolerance could occur, especially if investors lack sufficient knowledge and lose all their money.
According to Waller, if the losses emerge as witnessed with the Terra ecosystem, there will be demand for regulations. He, therefore, recommended action to be taken now.
“From a social perspective, there is another possible outcome when losses become widespread: Those losses become practically, politically, or morally intolerable. When everyday investors start losing their life savings, for no reason except wanting to participate in a hot market, demands for collective action can mount quickly,” said Waller.
Laws not to protect high net worth investors
The Fed Governor added that better regulation for the fast-growing crypto sector is needed not to help high net worth investors from losing money but for everyone else.
