Blockchain Investment CEO Criticizes BIS Crypto Segregation as ’High-Risk Policy Move’

The head of a prominent blockchain investment firm has issued a stark warning against the Bank for International Settlements’ (BIS) recent initiative to isolate cryptocurrency from traditional financial systems. Describing the approach as ’dangerously shortsighted,’ the executive emphasized that such regulatory fragmentation could stifle innovation and create systemic vulnerabilities in the global financial architecture. The comments come amid growing debate about central banks’ role in digital asset oversight, with industry leaders advocating for integrated frameworks that balance innovation with consumer protection.

CoinFund President Blasts BIS ‘Containment’ Strategy as Misguided and Fear-Driven

He criticized the report’s call for a “containment” approach to cryptocurrencies, arguing it reflects fear and a fundamental misunderstanding of the technology.

“Crypto is not communism,” Perkins wrote. “It’s the new internet that provides anyone with a connection access to financial services. You cannot control it any more than you control the internet.”

Perkins warned that isolating the crypto ecosystem could introduce major liquidity risks to the broader financial system, particularly since crypto markets operate 24/7 while traditional financial systems are constrained by trading hours.

“If implemented, [these policies] will cause — not mitigate — the systemic risk they seek to prevent,” he said.

The @BIS_org just published a new paper, “Cryptocurrencies and decentralised finance: functions and financial stability implication.” The good news is that the authors finally realize that advancements in crypto (including the growth of ETFs, stablecoins and tokenized real world…

The BIS report expressed concerns about the rapid growth of crypto and DeFi markets, warning that the influx of capital and users could destabilize traditional markets and increase investor risk.

Perkins countered that DeFi actually offers improvements over traditional finance, including greater transparency and reduced reliance on centralized intermediaries.

Addressing the BIS’s discomfort with anonymous DeFi development, Perkins argued that many TradFi institutions don’t publish their developer lists either.

“Sure, public companies provide a degree of disclosure and transparency, but they seem to be dying off in favor of private markets,” he said.

He also took issue with the BIS’s warnings about stablecoins potentially undermining monetary policy in countries like Venezuela and Zimbabwe.

“If there is demand for USD stablecoins and it helps improve the condition of anyone in the developing world, perhaps that is a good thing,” Perkins noted.

Perkins wasn’t alone in his criticism.

Christian Catalini, co-founder of Lightspark, described the BIS’s stance as outdated, comparing it to “writing parking regulations for a fleet of self-driving drones — earnest work, two technological leaps behind.”

1/ The @BIS_org just published a blueprint for “containing” crypto and DeFi. Think: writing parking regulations for a fleet of self‑driving drones — earnest work, two technological leaps behind. pic.twitter.com/11C8UaDuJM

US Crypto Owners Expect Less Regulation

Cryptocurrency enforcement in the United States may ease under the upcoming administration of Republican President-elect Donald Trump, with regulatory priorities expected to shift.

Speaking at a legal conference in New York, current and former senior government lawyers indicated that while financial fraud cases will still be pursued, the Justice Department’s focus will likely move toward immigration enforcement, a key campaign promise of Trump.

Scott Hartman, co-chief of the securities and commodities task force at the U.S. Attorney’s Office in Manhattan, revealed that fewer resources will be allocated to policing cryptocurrency crimes.