Federal Reserve Gov. Christopher Wall on Friday said regulators must ensure the U.S. financial system is “protected from risks” associated with digital currencies, but avoid rules that “unduly” limit the development of crypto technology. “While I don’t care if people take on risky investments or engage in risky business ventures, banks and other financial intermediaries must engage in any activity they do in a safe and sound manner,” Waller said in a speech at a digital money conference in California. At the same time, he said, the government should not “unduly limit the development and potential future uses of the positive features of the crypto ecosystem.” Waller also said it’s not the government’s role to compensate crypto investors for their losses, alluding to the recent scandal involving the FTX cryptocurrency exchange.
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