TechFlow News, April 27: According to Caixin, Kenneth Rogoff, former Chief Economist of the International Monetary Fund (IMF), warned that the Trump administration’s push for financial deregulation—particularly the relaxation of bank capital requirements and regulatory transparency—is significantly increasing the risk of a future systemic financial crisis in the United States.
Rogoff noted that one key justification currently cited for deregulation is to enable traditional banks to remain innovative and competitive against cryptocurrencies—especially dollar-pegged stablecoins. If cryptocurrency regulation is simultaneously relaxed, coupled with deregulation of the traditional financial system, it could trigger a “dual deregulation” risk, ultimately leading to systemic collapse. Although a full-scale banking crisis may not erupt imminently, the associated risks have clearly risen, and the regulatory balance between stablecoins and the traditional banking system has become a critical vulnerability.
