Class Year


Document Type

Student Research Paper

Date of Creation

Spring 2023

Department 1

Public Policy


The emergence of digital assets in the financial services industry in the 21st century raised concerns pertaining to consumer protection, regulatory oversight, and the safety and soundness of the United States financial system. In the efforts to foster digital assets in financial markets, lawmakers at both state and federal governments have begun spearheading regulatory initiatives aimed at protecting investors and consumers. This paper considers historical and current issues surrounding cryptocurrency, as well as existing policy and regulatory responses at the federal level. Among a wide array of policy issues regarding digital assets, this paper examines the consumer protection and contagion risks of cryptocurrency and their implications on U.S. financial stability. Employing the case study on the collapse of FTX cryptocurrency exchange in November 2022, this paper conducts a regression analysis between the market capitalization of FTX and other major cryptocurrency exchanges to illustrate their contagious and integrative relationships in the cryptocurrency market.


Written for PP 401: Advanced Topics in Public Policy.