Christopher Waller, Member of the Board of the US Federal Reserve (Fed), warned that those who own cryptocurrencies could lose all their investments.

Waller warned banks that they must protect themselves against malicious industry representatives and risks to the financial system.

Regarding the recent developments in the crypto market, US regulators, including the Fed, are warning banks that they should be more careful about the risk of fraud.

Commenting at a conference held at the Global Interdependence Center, Waller said the spillover to the broader financial system is “minimal” so far, saying it’s critical for regulators to mitigate financial stability risks associated with stress in the crypto industry.

Waller’s warning to crypto traders was even harsher, saying, “As assets with no real value, cryptocurrencies are risky. If people want to have such an asset, then let them continue.”

Source of information ; Bloomberg News