– Paul Krugman refers to the cryptocurrency market as a “postmodern pyramid scheme” in a New York Times op-ed.
– He says that the industry has lured investors in with a combination of technobabble and libertarian derp, and that it has used some of the cash flow to buy the illusion of respectability.
– Krugman believes that the recent crash in the crypto market is a chance for federal regulation.
– In a speech last week, Fed Vice Chair Lael Brainard said that the recent sell-off in the crypto market exposed “serious vulnerabilities in the crypto financial system.”
– Brainard called for regulation of the crypto industry before it gets too large and poses a threat to the existing financial system.