WASHINGTON, D.C.— Phillip Basil, Director of Banking Policy at Better Markets, issued the following statement around today’s release of Better Markets Fact Sheet on Cryptocurrencies:

“Over the last couple years, the size of the cryptocurrency industry has grown massively, as has the attention given to it from the public, financial markets and institutions, lawmakers, and regulatory agencies. The promises of crypto to improve financial inclusion, products and services have yet to be realized, and yet the risks and consumer protection issues are very real and experienced every day by hardworking Americans.

“Cryptocurrencies, and the ‘DeFi’ ecosystem associated with them, potentially can offer a means for greater financial inclusion and the provision of faster, easier, and cheaper financial products and services. However, as discussed in the fact sheet, it is unclear that there truly are any benefits and that any possible true benefits outweigh the risks and consumer protection issues. ‘Decentralized’ seems to be a euphemism for ‘out of the government’s reach’ and ‘unregulated,’ both of which are negatives when it comes to consumer protections and mitigating risks to the financial system.

“It must be recognized that cryptocurrencies pose the same or similar risks and raise the same or similar consumer protection issues as those of the traditional financial system. In fact, there has already been rampant consumer fraud in the cryptocurrency industry. Additionally, systemic risks would arise if there is broad-based adoption and the industry is not sufficiently regulated. The regulatory agencies must act to appropriately regulate the industry so that the American people can realize any real benefits while being protected from the risks.”

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Better Markets is a non-profit, non-partisan, and independent organization founded to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.

Contact: Evelyn Swan at 202-618-6433 or eswan@bettermarkets.org