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Ex-SEC Chair Arthur Levitt: Crypto Will Be Part of American Financial System

Wed, 05/03/2023 - 12:52
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Arman Shirinyan
Former SEC chair believes in digital assets far more than his current counterpart
Ex-SEC Chair Arthur Levitt: Crypto Will Be Part of American Financial System
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Former Securities and Exchange Commission (SEC) Chairman Arthur Levitt believes that cryptocurrencies will eventually become an integral part of the American financial system. As the U.S. economy faces ups and downs, including the ongoing banking crisis involving SVB and First Republic Bank, the adoption of cryptocurrencies and decentralized finance (DeFi) could potentially impact the financial landscape.

The integration of cryptocurrencies into the American financial system could bring several benefits. For instance, cryptocurrencies offer faster and cheaper cross-border transactions, which could help streamline global trade and remittance flows. Additionally, the use of digital assets could improve financial inclusion, providing access to financial services for unbanked and underbanked populations.

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Another crucial aspect of cryptocurrencies is their role in the burgeoning DeFi sector. DeFi platforms offer a wide range of financial services, such as lending, borrowing and trading, without relying on traditional intermediaries like banks. The adoption of DeFi could lead to a more inclusive and efficient financial ecosystem, fostering innovation and competition in the sector.

However, the integration of cryptocurrencies into the American financial system is not without its challenges. One of the primary concerns is the regulatory environment surrounding digital assets. Lawmakers and regulators need to strike a delicate balance between fostering innovation and ensuring consumer protection, market integrity and financial stability.

Furthermore, the issue of volatility remains a significant hurdle for cryptocurrencies. Price fluctuations can deter both retail and institutional investors from adopting digital assets, limiting their potential as a mainstream financial instrument. To overcome this challenge, the industry needs to develop more robust risk management tools and encourage the creation of stablecoins pegged to traditional currencies.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.