US Regulators Warn that Bitcoin, Other Cryptocurrencies Pose Significant Financial Stability Risk US Federal Reserve Chief Jerome Powell recently noted that cryptocurrencies pose significant risks to financial stability. Powell stated on Thursday (May 20, 2021) that greater regulation of crypto assets may be necessary. As reported by Reuters, the US Treasury Department cited concerns about wealthy people taking advantage of the loosely regulated crypto space to avoid taxes. The Treasury Department also stated that large digital currency transfers must be reported to relevant authorities. These new announcements have come at a time when Bitcoin (BTC), the leading virtual currency, has been experiencing extreme levels of volatility, with its price declining around 30% on Wednesday (May 19, 2021). The dramatic price drop came right after Chinese authorities stated that they’ll be imposing more restrictions on the crypto industry.