ChainCatcher news, reported by The block, Federal Reserve Vice Chairman Michael Barr responded to the controversy over the de-banking of the cryptocurrency industry. Barr stated that the Federal Reserve will maintain a neutral stance and will not prevent banks from collaborating with the crypto industry.He emphasized that the Federal Reserve has provided clear guidance and a regulatory framework that allows banks to engage in crypto business within compliance, while not mandating or discouraging banks from participating in related activities.

ChainCatcher news, the Vice Chair for Supervision at the Federal Reserve, Barr, stated that crypto technology still has "transformative potential," but it needs to maintain "appropriate boundaries." Banks should be cautious about cryptocurrencies. Banks that directly hold cryptocurrencies will be considered unsafe.The Federal Reserve has formed a team to research cryptocurrency innovations. Crypto investors often lack sufficient information to assess risks. The Federal Reserve is strengthening its cryptocurrency regulatory capabilities and plans to continue issuing guidance on cryptocurrencies. (source link)

Chain Catcher News, Federal Reserve Vice Chair Lael Brainard stated that the cryptocurrency market bears risks similar to those of traditional finance and that new regulations need to be developed for situations not covered by existing laws. She also reiterated the risks of stablecoins and predicted that the private sector will create more stablecoins in the future, raising questions about whether central banks should issue their own Central Bank Digital Currency (CBDC). "If not properly regulated, stablecoins are, in my opinion, one of the riskiest areas, and certainly, due to the operability of stablecoins, these risks can easily spread to the core financial system."It is reported that Lael Brainard is currently the second-in-command at the Federal Reserve, responsible for leading the Fed's exploration of a digital dollar. Previously, she stated that the crypto industry needs to meet the same safety standards as traditional finance to prevent it from becoming a threat to the broader financial system. (CoinDesk)