Former New York Fed President: If the Trump administration supports the cryptocurrency industry, laws and regulations should be established to protect its development

ChainCatcher news, according to Jinshi reports, former New York Fed Chairman Bill Dudley stated that if the Trump administration truly wants to support the emerging cryptocurrency industry, it should establish a set of laws and regulations to allow it to develop and operate safely. For example, ensuring that stablecoins are fully backed by Federal Reserve deposits or short-term Treasury bills. Legislation should define whether tokens are currencies or securities, and who will regulate them. Rules should be established to protect consumers and prohibit their use in criminal activities such as financing terrorism or illegal drug sales.

Cryptographic technology has the potential to improve the financial system— for example, making it easier and cheaper for people to trade financial assets, or enabling immigrants to send money back to their families more easily. However, without strong safeguards, fraud and abuse will persist, undermining the trust needed to establish these benefits.