Crypto Exec Blasts BIS: ‘Fear, Arrogance, Or Ignorance—Their Views Are Dangerous’

A major clash has erupted between cryptocurrency industry leaders and banking regulators over how to handle the growing crypto market.

CoinFund president Christopher Perkins has called the Bank for International Settlements’ (BIS) recent recommendations on cryptocurrency regulation “dangerous” for the entire financial system.

Banking Regulators Push For ‘Containment’ Of Crypto Markets

The BIS published a report on April 15 titled “Cryptocurrencies and Decentralized Finance: Functions and Financial Stability Implications,” which urged a strategy to isolate digital currency from traditional finance.

Perkins fired back on April 19 through a post on X (formerly Twitter), suggesting the BIS recommendations stem from “a mix of fear, arrogance, or ignorance” and are “completely uninformed.”

The @BIS_org just published a new paper, “Cryptocurrencies and decentralised finance: functions and financial stability implication.” The good news is that the authors finally realize that advancements in crypto (including the growth of ETFs, stablecoins and tokenized real world…

— Christopher Perkins NYC (@perkinscr97) April 19, 2025

At the heart of the dispute is the BIS’s approach to handling cryptocurrencies and DeFi (decentralized finance). Banking regulators have grown concerned as investments in this field have “reached a critical mass,” making investor protection “a significant concern for regulators,” according to the report.

Industry Expert Warns Of ‘Unimaginable Scale’ Of Risks

Perkins rejected the BIS’s containment approach, stating plainly: “Crypto is not communism.” He described digital assets instead as “the new internet that provides anyone with a connection access to financial services.”

According to Perkins, attempts to isolate the digital currency markets could backfire dramatically. He warned that such a policy would expose traditional finance to liquidity risks “of unimaginable scale.” This danger exists because crypto markets operate continuously, while traditional financial markets close after trading hours.

“If implemented they will cause–not mitigate–the systemic risk they seek to prevent,” Perkins stated in his response.

The BIS report expressed particular concern about the anonymity of DeFi developers. Perkins questioned this focus, asking: “Sorry, but when was the last time a TradFi company published a list of its developers?”

He argued that DeFi actually represents a “significant improvement” over what he called the “opacity” of traditional financial systems. While public companies provide some disclosures, Perkins noted they “seem to be dying off in favor of private markets.”

Banking regulators also raised alarms about stablecoins, suggesting they could lead to “macroeconomic instability in countries like Venezuela and Zimbabwe.”

Perkins countered this view, suggesting that “if there is demand for USD stablecoins and it helps improve the condition of anyone in the developing world, perhaps that is a good thing.”

Featured image from Getty Images, chart from TradingView