CFTC Commissioner Christy Goldsmith Romero compares recent market chaos to the conditions that brought about the 2008 financial crisis.
Another leader at the Commodity Futures Trading Commission is urging for more regulatory power over crypto markets. Christy Goldsmith Romero, a CFTC commissioner, warned of increasing “contagion risk” in crypto markets in a speech in New York yesterday.
The vulnerabilities seen during this beginning of what some call the ‘crypto winter’ warn of growing intra-market risks, with parallel themes seen in 2008,” she said. Her comments referred to the financial crisis caused in part by opaque swaps markets while pointing to calamitous market events like the collapse of stablecoin TerraUSD and private fund Three Arrows.
Just as regulators could not see the true exposures or risk in 2008 due to unregulated companies and products, we cannot see that today with unregulated crypto markets.
