Specialist Advocates for Stock Exchange-Style Regulation to Avert Cryptocurrency Crashes

Economist Alex Krüger is advocating for cryptocurrency markets to adopt rules similar to those governing the New York Stock Exchange (NYSE) to prevent significant value drops. He argues that the lack of regulated market makers leaves the crypto sector vulnerable to significant price collapses during unstable trading. In traditional finance, market makers are legally obligated to maintain orderly trading even during extreme price fluctuations. Krüger suggests that exchanges should introduce circuit breakers to protect market makers, but also notes that exchanges may find inaction more profitable.

However, this suggestion has been met with mixed reactions, with some arguing that traders themselves must take accountability. This comes as the market continues to grapple with instability, and Bitcoin, Ethereum, and Ripple's XRP have recently experienced significant losses.