Watchdog Archives -
Richard Cordray was the nation’s consumer financial watchdog. Can that propel him to governor of Ohio?October 12, 2018 | dailybusinessnews
You can even call him boring (asked by the Columbus Dispatch to name his favorite beer, wine or liquor he answered, “grapefruit juice”).
A whopping $ 3.5 million was spent on round-the-clock security for former EPA Administrator Scott Pruitt, one of many agency expenditures that made waves before Pruitt departed the role in July—and a new report from the EPA’s internal watchdog says the agency failed to prove the security spending was…
A federal watchdog is calling on the Environmental Protection Agency to strengthen its oversight of state drinking water systems in the wake of the lead crisis in Flint, Michigan, the AP reports. The EPA’s Office of Inspector General says in a report that the agency must take steps now to…
A framework has been developed for the G20 countries to “monitor the financial stability implications of crypto-assets markets.” The Financial Stability Board says cryptocurrencies “do not pose a material risk to global financial stability” but supports their “vigilant monitoring.”
G20’s Crypto Monitoring Framework
The Financial Stability Board (FSB) announced Monday that it “has developed a framework and identified metrics to monitor the financial stability implications of crypto-assets markets.” The framework was developed in collaboration with the Committee on Payments and Market Infrastructures (CPMI).
The board also published and submitted a report detailing its work on crypto-assets to the G20 as requested by finance ministers and central bankers at the G20 meeting on March 19 and 20 in Buenos Aires.
The FSB is an international body that monitors and makes recommendations about the global financial system to G20, an international forum for governments and central bank governors. The CPMI supports financial stability by promoting the safety and efficiency of payment, clearing, settlement and related arrangements.
“The objective of the framework is to identify any emerging financial stability concerns in a timely manner,” the report states, adding:
The framework discusses the primary risks within crypto-assets and potential transmission channels to financial stability risks. The framework identifies which metrics the FSB might usefully monitor in the short-to-medium term.
The report also notes that “in general, monitoring the size and rate of growth of crypto-asset markets is critical to understanding the potential size of wealth effects, should a decline in valuations occur.” Furthermore, “the use of crypto-assets for payment or settlement is another transmission channel to be monitored.”
FSB’s Proposed Metrics
Citing that the crypto market and its public data sources, which the proposed monitoring metrics are based on, are “rapidly evolving,” the FSB warned that “the quality of the underlying data can vary, and might not always be satisfactory.” The report explains:
Market-related figures, such as metrics on prices, trading volumes, and volatility may be manipulated by generally prohibited practices such as ‘wash trading,’ ‘spoofing,’ and ‘pump and dump,’ the existence of which cannot be ruled out at this stage.
The FSB also pointed out that “the proposed metrics may not fit all types of crypto-assets equally.” Nonetheless, it believes that they “provide a useful picture of crypto-asset markets and the financial stability risks they may present.” Over time, the FSB and the CPMI will consider improvements to the metrics as well as add new ones at a later stage.
No Material Risk to Financial Stability
The FSB report refers to decentralized, unbacked cryptocurrencies and crypto-assets as “first generation private digital tokens,” which are dismissed as “unsafe money.” However, it notes that “safer central bank issued cash may be less convenient in an era of electronic payments.” The report continues:
Crypto-assets do not pose a material risk to global financial stability at this time…At present, like crypto-assets in general, crypto-asset platforms do not pose global financial stability risks. Nevertheless, they raise other significant concerns, including consumer and investor protection, market integrity and money laundering/terrorism financing, among others.
The FSB further revealed that the Basel Committee on Banking Supervision is currently “conducting an initial stocktake on the materiality of banks’ direct and indirect exposures to crypto-assets.”
While the FSB does not believe crypto-assets pose a material risk to global financial stability, it supports “vigilant monitoring in light of the speed of developments and data gaps,” the report details.
What do you think of the FSB’s crypto monitoring framework? Let us know what you think in the comment section below.
Images courtesy of Shutterstock, BIS, and FSB.
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Critics say CFPB nominee Kathy Kraninger lacks the experience to be the nation’s top consumer financial watchdogJune 19, 2018 | dailybusinessnews
Nominees for top federal financial regulators usually have worked in high-level government or private-sector jobs, and President Trump had been following that traditional playbook. Until his latest pick.
His choice for comptroller of the currency was chief executive of Pasadena’s OneWest Bank;…
FBI Director Christopher Wray and Justice Department Inspector General Michael Horowitz are expected to be the centers of attention Monday when they testify before the Senate Judiciary Committee on Horowitz’s bombshell report on the FBI’s investigation of Hillary Clinton’s personal email server.
A much-anticipated report by the Justice Department’s inspector general says James Comey mishandled the Hillary Clinton email controversy in the waning days of the 2016 election, reports Bloomberg . However, the report by Michael Horowitz may disappoint supporters of President Trump by concluding that the former FBI chief wasn’t motivated by…
The global chemical weapons watchdog says the nerve agent sarin and toxic chemical chlorine were “very likely” used as weapons in two attacks in central Syria in late March 2017.
If the stakes weren’t so high, it would be incredibly fun watching financial firms and their Republican allies repeatedly make the case that the Consumer Financial Protection Bureau is a rogue agency determined to undermine capitalism, democracy and the American way of life.
My absolute favorite…
The global chemical-weapons watchdog confirmed Britain’s analysis of the type of the nerve agent used in the poisoning of former Russian double agent Sergei Skripal and his daughter.
WSJ.com: What’s News Europe