IMF's Former Chief Economist Warns Double Deregulation Could Trigger Systemic Financial Crisis

Gate News message, April 27 — Kenneth Rogoff, former chief economist of the International Monetary Fund, has warned that the Trump administration's push for financial deregulation—particularly loosening bank capital requirements and regulatory transparency—is significantly raising the risk of a systemic financial crisis in the United States. Rogoff highlighted that one key rationale behind deregulation efforts is to help traditional banks maintain innovation and competitive strength against cryptocurrencies, especially stablecoins pegged to the U.S. dollar.

Rogoff cautioned that if crypto regulation is simultaneously loosened alongside traditional financial deregulation, a "double deregulation" scenario could emerge, potentially leading to systemic collapse. He noted that while a full-scale banking crisis may not materialize in the near term, the risks have visibly increased, and the regulatory balance between stablecoins and the traditional banking system has become a critical vulnerability.