It's increasingly becoming a consensus opinion that the crypto industry needs to be regulated with even the most prominent crypto boosters now openly discussing the need for this after the latest reveal of frauds and blowups.

Of course, this undermines one of the original tenets of Satoshi Nakamoto who was looking to evade the traditional financial system in the wake of the financial crisis. Thus, bitcoin and crypto were created to allow for transactions without third-party intermediaries.

Given the growth in the crypto industry and increasing connections between it and the traditional financial system, it was only a matter of time before concerns of systemic risk and individual blowups led to federal regulators becoming increasingly involved.

The latest evidence of this is a speech from Federal Reserve Governor Michael Barr, who was recently confirmed as the vice chair for supervision. This gives him jurisdiction over banks and other financial institutions.

Barr is in favor of taking action on stablecoins, making preparations for climate change and prioritizing the resilience and fairness of the financial industry. He previously served as the Assistant Treasury Secretary for financial institutions during the Obama administration.

His agenda includes assessing the long-term impacts of financial risks due to climate change. He also wants to encourage financial institutions to offer access to banking services to low-income individuals. This would also include more access to information to make better decisions and protection from unfair treatment including onerous fees.

In terms of stablecoins, he remarked, "Stablecoins, like other unregulated private money, could pose financial stability risks. I believe Congress should work expeditiously to pass much-needed legislation to bring stablecoins, particularly those designed to serve as a means of payment, inside the prudential regulatory perimeter." He also wants financial institutions engaging in cryptocurrency activities to have proper risk controls.

It's understandable why a Democratic administration would select someone like Barr who is also concerned about climate change and its impact on the financial system. He also is focused on lower-income individuals and wants the Fed and the financial industry to provide more support and resources to lower-income individuals.