When asked about the fate of the crypto industry after the unfortunate meltdown of the Terra ecosystem Permissionless conference in Palm Beach, experts in the financial industry are confident that the industry will recover.
The Head of Emerging Equity at Morgan Stanley Investment Management, Amy Oldenburg, said that he doesn’t think we will miss anything when responding to a question on the situation of crypto adoption.
The BlockFi’s head of institutional relationship management, Jessica Raybeck, said: “The technology used by algorithmic stablecoins are quite complex and with the way the Terra ecosystem crashed, most institutional players are already taking a cue to consider the technology each token is built on before investing in it.”
Experts believe that the collapse of UST will attract more scrutiny for the stabecoin industry and the Morgan Stanley executive added that innovators can take advantage of this. He believes that necessary regulation will help onboard more users in the space and even advance projects.
The Chief Product Officer at BCB Group, Chris Aruilah, said that a time is coming when it will be illegal to just build and break things like this. He also affirmed that financial authorities have called for regulation of the growing stablecoin industry way before the events from last week. And this is in an attempt to fix the underlying risks involved in the industry like the risks of contagion for the market at large, risks of de-pegging which led to the imminent crash of the Terra ecosystem, and the risks it has in the payment systems.
As pointed out by financial regulators, the collapse of the Terra ecosystem has proved that these underlying risks are not hypothetical. Raybeck, however, believes that it is going to be somewhat challenging to move forward with the tangible policy.
According to Raybeck, calling for transparency in the project reserves is not too much to ask, but the real concern starts when the regulation starts preventing operations and innovations in the space.
Amy Oldenburg added to the statement that regulators are not just after the stablecoins industry. He opined that there will be different policies that govern the entire crypto space in the nearest future even though there is an additional layer of complexity in place because of the nature of the industry and different regulatory bodies in different countries are considering different approaches.
According to Oldenburg, cryptocurrency is the convergence of finance and technology, and history holds that there is not much regulation in the technology sector while there are tons of them in the financial section, hence the complication with the crypto industry.
The post Morgan Stanley Executive Says UST Collapse Will Not Stop the Industry appeared first on CryptocyNews.com.
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