US President, Joe Biden to Name Crypto Advocate as Top Economic Adviser

Barring any last-minute change, United States President, Joe Biden will name Federal Reserve Vice Chairwoman Lael Brainard as his top economic adviser, sources familiar with matter disclosed.

Lael Brainard has been described as a crypto advocate although, with a missed feelings towards digital assets, Investors King learnt. 

If the appointment is made, Lael Brainard would replace White House National Economic Council (NEC) Director Brian Deese, who has announced his resignation.

In July 2022, while calling for crypto adoption, Lael Brainard however argued that aggressive regulation is needed for the sector before things get out of hand.

Recent volatility has exposed serious vulnerabilities in the crypto financial system,” Brainard said in a speech in London in July last year.

Brainard has been leading the Fed’s work on a potential digital dollar. Her experience and advocacy for a digital dollar is seen as a good omen for cryptocurrency. 

While acknowledging the vulnerability and challenges associated with cryptocurrency, Lael Brainard contends that the shortcomings of crypto are basically the same as traditional finance, and the sector needs to meet the same safety standards before it gets large enough to become a threat to the rest of the financial system.

Meanwhile, multinational financial institution, Morgan Stanley has noted that falling stablecoins could do damage to the cryptocurrency market. The bank said in one of its reports. 

The bank notes that U.S. regulators have begun limiting stablecoin products, adding that stablecoin issuance is important for crypto traders. Falling stablecoin market capitalization is an indication of falling cryptocurrency liquidity and leverage, the equivalent of quantitative tightening for the crypto market, the report said.

Investors King earlier reported that US Securities and Exchange Commission has accused Paxos of illegally issuing BUSD, classifying it as an unregistered security. 

Stablecoin is a type of cryptocurrency whose value is pegged to another asset, such as the U.S. dollar or gold. Stablecoins are important to the activities of cryptocurrencies as traders.