(Bloomberg) — The crypto world continues to be in the spotlight this week, with the Federal Reserve reiterating a warning of potential economic risks just days after digital-asset firms dominated the advertisements during the Super Bowl.
“Some participants saw emerging risks to financial stability associated with the rapid growth in crypto-assets and decentralized finance platforms,” minutes from the Fed’s January meeting showed when released Wednesday.
Digital assets’ market value has risen exponentially over the last decade, the memo noted. It currently stands at around $1.9 trillion, according to CoinMarketCap. Additionally, Fed staff expressed concern about the cryptocurrencies’ infamous volatility, including the “sizable declines since late last year.” Cryptocurrencies were last mentioned by the committee in a July release.
The Fed wasn’t the only critic of crypto this week. Senate Banking Chairman Sherrod Brown at a hearing Tuesday condemned the Super Bowl promotions, saying they failed to warn investors of the potential risks of putting money into the white-hot asset class.
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