CoinFund and Lightspark executives criticize BIS for suggesting separation between crypto and mainstream finance.

A new report from the Bank for International Settlements (BIS) has triggered backlash from the blockchain community. The April 15 report calls for a clear “containment” of cryptocurrencies and decentralized finance (DeFi) to prevent potential risks to global financial systems.

But Christopher Perkins, president of CoinFund, says such recommendations are not only flawed but potentially harmful. In a detailed response shared on X, Perkins described the BIS approach as “uninformed, fear-based, and counterproductive.”

Perkins: Crypto Powers Financial Inclusion — Not Chaos

Perkins challenged the report’s core thesis — that crypto should be isolated from the traditional economy — arguing that such a stance overlooks the technological progress and financial access crypto brings.

“Crypto isn’t a threat to order — it’s a path to broader inclusion,” he said. “You can’t firewall it away any more than you could stop the rise of the internet.”

He stressed that cutting crypto off from legacy systems would create more disjointed liquidity, potentially escalating financial instability in high-stress market environments.

Report Misjudges DeFi’s Capabilities, Critics Say

The BIS paper raised alarm about the growing size of DeFi, anonymous development teams, and stablecoins’ role in undermining monetary sovereignty in countries with weak economies.

But Perkins pushed back, stating that DeFi enhances financial transparency and removes opaque gatekeeping by replacing it with smart contracts. He also noted that many financial institutions are equally non-transparent when it comes to disclosing who builds their systems.

“The idea that anonymity equals danger is flawed. TradFi systems have plenty of closed-door operations,” Perkins noted.

Stablecoins Under Fire — But May Offer Real-World Help

The BIS expressed concern that the widespread use of USD-pegged stablecoins in nations like Zimbabwe and Venezuela could interfere with monetary policy control. But Perkins countered that these tools often offer financial lifelines to people living under hyperinflation and currency collapse.

“If access to digital dollars helps people survive — that’s a positive use case,” he said.

Lightspark Co-Founder Says BIS Is Behind the Times

Christian Catalini, co-founder of Lightspark, also chimed in, criticizing the BIS for its outdated viewpoint.

“Writing crypto policy without understanding the tech is like regulating horse-drawn carriages in an age of electric cars,” he said.

Catalini warned that unless regulators keep pace with innovation, they risk creating irrelevant or obstructive policies that fail to address the needs of modern finance.

Trump-Era Policies Could Ease U.S. Crypto Enforcement

In parallel, the U.S. may be entering a more relaxed phase of crypto enforcement under President-elect Donald Trump. Legal experts speaking at a Manhattan conference suggested that enforcement priorities are expected to shift toward immigration, with fewer resources devoted to pursuing crypto-related cases.

Scott Hartman, a senior figure in the U.S. Attorney’s Office, confirmed that crypto fraud cases will continue, but won’t be front and center.This could lead to regulatory breathing room for Web3 companies navigating uncertain U.S. policy environments.