The Bank for International Settlements (BIS) has been criticized for its attempt to segregate crypto markets and its debatable recommendations on DeFi and stablecoins, which have been described as “dangerous” for the financial system by the president of a blockchain investment firm. In a post on X, Christopher Perkins from CoinFund expressed concerns about the BIS’ report titled “Cryptocurrencies and Decentralized Finance: Functions and Financial Stability Implications,” stating that many of the suggestions are ill-informed and risky. Perkins emphasized that trying to contain crypto from traditional finance is not the solution as crypto serves as a new internet providing financial services to all. He warned that isolating crypto could expose traditional finance to enormous liquidity risks, especially considering the crypto market operates 24/7. The report highlighted the exponential growth of investors and capital in crypto and DeFi, raising concerns about investor protection. Perkins defended DeFi, arguing it improves upon the traditional financial system’s opacity and imbalances. Criticisms were also directed at the BIS’s worries about stablecoins causing macroeconomic instability, with Perkins advocating for their potential benefits. Other industry experts, like Christian Catalini from Lightspark, also criticized the BIS report, comparing it to outdated regulations for advanced technologies. The debate underscores the ongoing tension between traditional financial institutions and the rapidly evolving crypto space.