IMF Says Crypto Market Turmoil Hasn’t Affected Global Financial Stability

According to the International Monetary Fund (IMF), the upheaval in the cryptocurrency market hasn’t really harmed the global financial system’s stability. The International Monetary Fund (IMF) claimed in a report released on Tuesday that cryptocurrency assets have “seen a significant selloff” that has resulted in losses for crypto investment vehicles and the failure of algorithmic stablecoins and crypto hedge funds. However, there have only been a few recent spillovers to the more extensive financial system. A world economy already weakened by the epidemic had been hammered, the IMF continued, by higher-than-expected global inflation, a worse-than-expected recession in China, and additional negative spillovers from the conflict in Ukraine. Jerome Powell: Crypto Volatility Hasn’t Had Major Implications The head of the U.S. Federal Reserve, Jerome Powell, stated last month that the institution was “not seeing major macroeconomic repercussions so far” from the recent volatility in the cryptocurrency market. Powell noted during his testimony before the Senate Banking Committee that the central bank is closely monitoring changes in the cryptocurrency sector and that “a better regulatory framework is needed.” According to Powell, “the same behavior should be subject to the same regulation no matter where it appears, and that isn’t the situation at the moment.” At a hearing in May, U.S. Treasury Secretary Janet Yellen brought up Ter...