Senior Chair Rodge Cohen appeared on Bloomberg TV’s “Balance of Power” to discuss a range of topics, including capital requirements, the recent confirmation of Michael Barr as Vice Chair for Supervision of the Federal Reserve and cryptocurrency regulation.
Addressing bank capital, Rodge said that imposing additional capital requirements on banks could adversely affect their ability to lend in the future, and the regulatory approach to certain areas of lending—for example, commercial real estate—is currently restricting lending.
Commenting on the recent confirmation of Michael Barr to serve as Vice Chair for Supervision of the Federal Reserve, Rodge said Barr is a superb choice and comes with a mastery of an extraordinarily complex regulatory system. He also said that Barr will be an effective leader, with a strong focus on the consumer.
On cryptocurrency regulation, Rodge noted that he was disappointed that the recent collapse of a number of cryptocurrencies has not created more urgency for regulation, especially as many users lost money. He also pointed to the truly responsible players in this space that do not shy away from regulation, and see regulation as an opportunity rather than an obstacle. He suggested that the Financial Stability Oversight Counsel (FSOC) could play a role by bringing administrative agencies together to regulate this sphere.