NEW YORK— Fintechs and cryptocurrency companies are “getting away with murder” as they compete with financial institutions without having to comply with many regulations, according to a former Comptroller of the Currency under President Bill Clinton believes.
Eugene Ludwig offered those views and others during a panel discussion at The Clearing House and Bank Policy Institute’s yearly conference, arguing that the lack of oversight of these companies could lead to the next recession, Bloomberg reported.
Ludwig added that if the Federal Reserve endorses a central bank digital currency (CBDC), that will move the deposit experience away from banking and into the government, which will present “all kinds of problems,” according to Bloomberg.
‘Retake the Turf’
Banks should “retake the turf rather than let the turf devolve away” and be permitted to “play more aggressively in the crypto markets,” he said, noting the current tendency is to do the opposite, the report stated.
Ludwig served as comptroller of the currency from 1993 to 1998 and is now a managing partner at Canapi Ventures, which invests in fintechs.
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