Former Fed official cautions against speedy passage of Wall Street reform

"The legislation and these proposals are entirely domestic, and the financial system is entirely international," he said.

Bliss said that while the 2008 financial crisis started in the U.S., it affected Europe because that continent's banks were buying U.S. subprime mortgages.

Now, with Europe facing its own crisis, Bliss believes lawmakers need to determine how that meltdown could affect the U.S. before they pass the reform bill.

"[There's] a major financial crisis brewing in Europe, and that's going to feed back in the U.S. financial markets and our economy," he said. "In today's global markets, we can't have our heads in the sand about the reform's international implications."