Crypto 'too small' to damage broader market

STORY: Bitcoin fell to its lowest level in 16 months on Thursday (May 12), leading a rush out of risk assets such as tech stocks, while the collapse of TerraUSD, a so-called stablecoin, underscored the strain on cryptocurrency markets.

Stablecoins are digital tokens pegged to the value of traditional assets, such as the U.S. dollar. They are popular as safe havens in times of turmoil in crypto markets.

R3 Managing Director, and former COO of the U.S. Commodity Future Trading Commission, Charley Cooper said, "the reality is these instruments make up really a fraction of the economy."

"Although there are definitely trading firms that are losing a lot of money and that have money at stake in the outcome of this particular event, I don't believe at this time it will pose a systemic risk to the broader system."

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