New government reports warn that the rise of crypto-related economic risks could trigger widespread financial disruption.
As the cryptocurrency industry scored massive electoral wins in November and skyrocketing crypto prices currently push the global valuation to more than $3 trillion, federal regulators have issued warnings about the nascent industry’s potential to cause widespread disruptions to traditional banking and financial markets.
The reports, which highlight crypto’s volatility, lack of regulations, and growing ties to traditional markets, echo alerts issued about the subprime mortgage industry before the 2008 financial crisis.
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