Krugman warns: Easing regulations is laying the groundwork for the next financial crisis.

[Bitcoin] Nobel laureate in Economics Paul Krugman recently issued a sharp warning. He believes that some individuals in the current government are systematically dismantling the firewalls established after the 2008 financial crisis. This is not alarmism, but is supported by specific evidence.

Take a look at the banking regulation aspect. Federal Reserve Governor Bowman is vigorously promoting the relaxation of bank capital requirements. On the surface, this can make banks' short-term profits look better. But at what cost? The entire financial system's ability to withstand risks will be weakened. Krugman's analogy is very direct: “Get ready to party like it's 2008.”

What is more noteworthy is the trend in the crypto space. Through the so-called “GENIUS Act,” stablecoins are receiving strong support at the policy level. Where is the problem? Stablecoin issuers, represented by Tether, are operating in a regulatory vacuum. Krugman likens this to the private banking sector of the 19th century—an era known for frequent financial panics and bank runs.

History often repeats itself, just dressed in new clothes. When the dam of regulation is gradually breached, risks will surge in like a tide.