The Promise of Crypto and Ensuring Effective Regulation

The crypto market has lost two-thirds of its market capitalization in 6 months. Does DeFi technology still hold promise despite this crash? What needs to be done to effectively regulate this volatile industry to ensure investor security, consumer protection, and market integrity? Advocates of DeFi solutions argue that these new technologies could be used to provide significant benefits in terms of access, cost, and the ease of using financial services.  How this plays out, in terms of its impact on the structure of the industry and how such services are provided is likely to have significant consequences for the global economy. In today's conversation, moderated by Carolyn Wilkins, with William C. Dudley, the co-authors of BWC's Digital Finance Project Team's new briefs on DeFi technology and regulatory framework, Gregory Johnson and Richard Berner, illustrated how the objective of the briefs is to examine the potential benefits that these new technologies and a decentralized finance system might generate and to identify and propose ways in which an appropriate regulatory framework would enhance their potential while minimizing risks.