Former New York Fed Chairman: The Trump administration should establish a set of laws and regulations for the safe development and operation of the cryptocurrency industry

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 stablecoins are fully backed by Federal Reserve deposits or short-term treasury bills. By legislating whether tokens are currencies or securities, and who regulates them. Establish rules to protect consumers, and prohibit their use for criminal activities such as terrorist financing or illegal drug sales.

Cryptographic technology has the potential to improve the financial system - for instance, making it easier and cheaper for people to trade financial assets, or enabling immigrants more easily send money back home. However, without strong safeguards in place, fraudulent and abusive behavior will persist which could undermine trust needed for these benefits.