In this edition of The Daily we cover recent remarks from the new Chair of the Financial Stability Board (FSB), a spat between Wikileaks and Craig S. Wright (CSW), and the latest update about the upcoming institutional crypto platform Bakkt.
New FSB Chair Fears Crypto
Randal Quarles is an equity investor and former U.S. Under Secretary of the Treasury for Domestic Finance who now serves as vice chair for supervision of the Federal Reserve Board of Governors. At his inaugural speech as Chair of the Financial Stability Board (FSB) at a Bank for International Settlements (BIS) meeting in Hong Kong he remarked on the challenges cryptocurrencies offer for the Switzerland-based intergovernmental body.
Quarles said that “the FSB has decided to undertake a review of its framework for assessing vulnerabilities to ensure that we are at the cutting edge of financial stability vulnerability assessment … This should be a framework that starts from first principles and benefits from substantial dialogue with non-banks as well as banks, regulators, and other relevant official bodies … I trust that the framework will harness the strength of the broad and diverse membership of the FSB, that it will be forward looking, and that it will be flexible enough to handle a financial system that will continue to evolve over time. This will not be easy — developments like the emergence of crypto-assets may challenge any framework — but that makes the goal of a robust framework all the more important.”
Federal Reserve Board Building, Washington, DC
The FSB is an international body that monitors and assesses vulnerabilities affecting the global financial system and includes all G20 economies.