Crypto advocates push back as BIS calls for strict isolation of digital assets from traditional finance.
The Bank for International Settlements (BIS) is under fire from crypto leaders after releasing a report that urges greater separation between digital assets and traditional financial systems. The backlash centers on the BIS’s April 15 paper titled “Cryptocurrencies and Decentralized Finance: Functions and Financial Stability Implications.”
Among the critics is Christopher Perkins, president of blockchain investment firm CoinFund, who condemned the BIS’s recommendations as “dangerous” and “uninformed.”
Perkins: BIS Approach Reflects Fear, Not Understanding
In an April 19 post on X, Perkins rejected the BIS’s suggestion to “contain” the influence of crypto, calling the stance out of touch with technological progress.
“Crypto is not communism,” he wrote. “It’s the new internet — a tool that gives everyone access to financial tools regardless of borders. You can’t regulate it any more than you can regulate the internet.”
Perkins argued that trying to isolate the crypto market could have unintended consequences, including liquidity gaps that harm the traditional financial system — especially since crypto trades 24/7, while legacy markets are bound by limited hours and centralized infrastructure.
“These containment policies could increase, not reduce, systemic risk,” he added.
BIS Warns of Crypto Risk — Industry Says It’s the Future
The BIS report expressed concerns about DeFi’s rapid growth, suggesting that the sector’s speed and capital flows could destabilize broader financial markets. It also warned about anonymous development and the use of stablecoins in fragile economies, arguing these tools might weaken national monetary policy.
Perkins pushed back on these points, claiming DeFi brings transparency, reduces centralized dependencies, and allows for faster innovation.
“TradFi institutions don’t exactly post their development teams either,” Perkins noted. “And public companies are fading as private markets take over.”
He also dismissed the criticism surrounding USD stablecoins in countries like Venezuela or Zimbabwe, arguing that these assets often offer financial stability where fiat currencies have failed.
“If stablecoins improve life in the developing world, maybe that’s a good thing,” he said.
Others Join the Criticism: BIS Is ‘Two Leaps Behind’
CoinFund isn’t alone in its frustration. Christian Catalini, co-founder of Lightspark, also criticized the BIS’s stance. In his view, it reflects outdated thinking.
“It’s like writing parking regulations for self-driving drones. Thoughtful work, but you’re two leaps behind the curve.”
Many in the crypto sector believe the BIS’s posture shows institutional discomfort with decentralization and reluctance to adopt technological shifts that challenge long-standing financial norms.
U.S. Crypto Regulation May Ease Under Trump
Meanwhile, in the U.S., crypto regulation could see a shift under President-elect Donald Trump’s incoming administration.
At a legal conference in New York, senior government officials and former prosecutors suggested that regulatory priorities will likely pivot away from aggressive crypto enforcement, focusing instead on immigration and border policies.Scott Hartman, co-head of the securities and commodities task force at the U.S. Attorney’s Office in Manhattan, stated that fewer resources will be directed toward
