monetary policy should aim to avoid such risks and keep the expansion on a sustainable track. the second issue is how best to integrate balance sheet policy with interest rate policy. the fomc has indicated that the federal reserve will, in the longer run, hold no more securities than necessary to implement monetary policy efficiently and effectively – which will require us to reduce the size of our balance sheet substantially. but that statement leaves open the question of when we should begin that process. because the tools i mentioned earlier – the payment of interest on reserve balances and the overnight reverse repurchase facility – can be used to raise the federal funds rate independent of the size of the balance sheet, we have the flexibility to adjust the size of our balance sheet at the appropriate time. with the federal funds rate still quite low and expected to rise only gradually, there is some benefit to maintaining a larger balance sheet for a time. doing so should help support accommodative financial conditions and so reduce the risks to the economy in the event of an adverse shock. consistent with this view, the committee has decided to continue to reinvest principal payments from its securities portfolio until normalization of the federal funds rate is well under way. the decision about when to cease or begin phasing out reinvestment will depend on how economic and financial conditions and the economic outlook evolve. 3 with that background, i thank you for listening, and look forward to continuing the discussion, initially with dan yergin. see the committee ’ s policy normalization principles and plans ( see note 3 ) as well as the discussion under the heading “ system open market account reinvestment policy ” in the minutes of the september 2015 committee meeting ( www. federalreserve. gov / monetarypolicy / fomcminutes20150917. htm ). bis central bankers ’ speeches

- asset activities perform functions and, hence, carry risks, that strongly resemble those of traditional financial activities. think, for example, of the similarities between staking and deposit - taking, or between crypto - lending and securities financing transactions. and so, we believe they should be regulated as such. a number of our recommendations have to do with the vulnerabilities of centralized crypto - asset intermediaries. and i stress'centralized'because, however'de - centralized'the crypto - asset ecosystem claims to be, economic reality tells a different story. in fact, some of these intermediaries already seem to play a systemic role within the cryptoecosystem. that is why we recommend that authorities require a number of things from these entities. for instance to have in place robust governance frameworks and to set up risk management practices. of course, i know that implementation takes time. but i also know it's high time – as i have often heard my british colleagues say – to'crack on '. so, let's prioritise the full and consistent implementation of our high - level recommendations. because in the meantime, people investing in crypto - assets continue to run serious risks. in the meantime, linkages between the crypto - ecosystem and traditional finance may very well continue to grow. so, in the meantime, risks to financial stability can still escalate. 2 / 4 bis - central bankers'speeches there are several ways through which we can prevent crypto - asset volatility from spilling over to the traditional financial system. one important way to do this, is with the full and consistent implementation of the bcbs prudential framework for the treatment of banks'crypto - asset exposures. putting this global framework into practice limits the chance that crypto - volatility reaches banks and hence becomes a threat to financial stability. to keep a close eye on the progress made, the fsb will start monitoring implementation. our first review should be finalized by the end of 2025. and the fsb will not only monitor progress. if we are serious about regulating what is essentially a cross - border phenomenon, we also need to be serious about cross - border cooperation. about information sharing. about working together. this also means that we need to venture outside of the fsb jurisdictions. because several jurisdictions with material crypto - asset activities are not members of the fsb. nevertheless, global financial stability ties all of us together