Summary: Leaders of the U.S. and U.K. central banks have called for greater international cooperation to help them oversee the growing decentralized finance (DeFi) and crypto market. Federal Reserve Chairman Jerome Powell reiterated regulatory concerns in the crypto and digital asset space, speaking at the Bank for International Settlements (BIS) Innovation Summit on Wednesday, Powell said: “Our existing ...

Leaders of the U.S. and U.K. central banks have called for greater international cooperation to help them oversee the growing decentralized finance (DeFi) and crypto market.

Federal Reserve Chairman Jerome Powell reiterated regulatory concerns in the crypto and digital asset space, speaking at the Bank for International Settlements (BIS) Innovation Summit on Wednesday, Powell said: “Our existing regulatory frameworks were not built with a digital world in mind. Stablecoins, central bank digital currencies, and digital finance more generally, will require changes to existing laws and regulation or even entirely new rules and frameworks.” 

Powell did not elaborate on the details of the required regulations.

“I think a lot of the progress we make on this path will depend on a really high level of international cooperation if we are to unlock the potential of digital assets and services.” He added.

Bank of England Governor Andrew Bailey agreed, arguing that regulators must “quickly” get a grip on DeFi and the industry’s growth.

By Mary Liu