Federal Reserve: The crypto ecosystem still lacks strong regulation, and DeFi is not yet likely to trigger systemic risks

Recently, the Federal Reserve's research institution published two new papers exploring the regulatory issues of the crypto ecosystem and its related impacts on the traditional financial system. The papers point out that, under appropriate circumstances, supervision, requirements for increased transparency, and capital and liquidity requirements can enhance the resilience of entities within the digital asset ecosystem. Currently, centralized trading platforms are often not subject to these conditions.

Furthermore, regarding systemic risk, the conclusion states that although the crypto ecosystem is prone to "financial loopholes," it currently does not pose a systemic risk because the digital asset ecosystem does not provide core financial services and has limited connections to the traditional financial system. (Source link)