CoinFund president has shot back at The Bank for International Settlements (BIS) calling for the containment approach to isolate cryptos from traditional finance and broader economy, saying

"Crypto is not communism!"

CoinFund President Slam BIS' “Containment” Strategy

CoinFund president Christopher Perkins did not mince words, calling the BIS recommendations “completely uninformed and, frankly, dangerous” in a widely shared post on X.

In his X post, Perkins wrote

"Guys, crypto is not communism. Its the new internet that provides anyone with access to financial services."

He also rejected the comparison to Cold War containment strategies, claiming its impossible to contain crypto just like how you are unable to control the entire internet.

He accused the BIS of acting out of “fear, arrogance, or ignorance,” and warned that isolating crypto from traditional finance (TradFi) could trigger liquidity risks “of unimaginable scale”—especially as crypto markets operate 24/7, unlike their conventional counterparts.

Instead of containment, Perkins advocates for modernizing traditional financial systems to integrate with blockchain technology. He also suggested that regulation should focus on updating legacy systems rather than isolating new technologies.

"Capital rules should not contain public blockchains-they should encourage them."

BIS Argues the Mass Adoption of Crypto Calls for Tougher Oversight

The BIS report warns that cryptocurrencies and DeFi have reached a “critical mass,” with growing links to TradFi through vehicles like Bitcoin ETFs and the tokenization of real-world assets.

Regulators are increasingly concerned about investor protection, systemic risk, and the potential for stablecoins to disrupt economies—especially in emerging markets.

To address these risks, the BIS advocates for embedding regulatory rules into smart contracts and strengthening oversight of stablecoins, including new requirements for stability and reserve assets.

The report also highlights concerns about the anonymity of DeFi developers and the possibility that stablecoins could fuel macroeconomic instability in countries with volatile currencies.

But Perkins pushed back against BIS' claim that DeFi presents significant challenges, arguing instead it represents a "significant improvement" over the "opacity" and imbalances of the traditional financial system.

Perkins also pointed out a flaw in BIS' argument. Perkins argues that while traditional financial institutions does provide a degree of disclosure and transparency, but they typically also do not publish their list of developers. Hence, Perkins is questioning these double standards.

Catalini likened the BIS’s regulatory approach to “writing parking regulations for a fleet of self-driving drones”—well-intentioned, but fundamentally lagging behind the pace of innovation.

Perkin also took issue with BIS's worry that stablecoins would cause macroeconomic instability in nations like Zimbabwe and Venezuela.

"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?"

He later adds that people worldwide deserve access to basic financial services regardless of their country's monetary stability.

Containment or Collaboration?

As the BIS doubles down on its call for stricter crypto containment, the industry warns that such measures could backfire, amplifying systemic risk instead of mitigating it.

With crypto’s integration into global finance accelerating, the debate over how to regulate digital assets is set to intensify—raising urgent questions about the future of innovation, investor protection, and financial stability worldwide.