More crypto regulation is needed

In the remarks given At the 2021 American Fintech Council Political Summit, Acting Currency Comptroller Michael J Hsu called for greater...



In the remarks given At the 2021 American Fintech Council Political Summit, Acting Currency Comptroller Michael J Hsu called for greater regulation of universal crypto firms.

“Large universal crypto companies, especially issuers of high circulation stablecoins, should adopt comprehensive and consolidated oversight. At the same time, regulators of federal and state banks should prioritize developing policies, personnel, and supervisory approaches to bring these businesses safely within the regulatory perimeter of banks. This would clearly differentiate safe and healthy crypto firms from those that are only partially regulated and have a history of supervisory failures, such as Binance and Tether. “

The Office of the Comptroller of the Currency is responsible for the regulatory oversight of federally chartered banks operating in the United States. Hsu further stated:

“The rapid expansion and mixing of wholesale and retail activities in some crypto companies raises the question of whether there should be a Glass-Steagall-type business separation in the crypto space.”

Glass-Steagall was a 1933 federal law that blocked investments and commercial banks, and was repealed in 1999. Hsu ultimately cautioned, “In the cryptocurrency space, the rapid growth in the number of users and the total market value was matched only by the growth of scams. and consumer complaints. “Go fast and break things” is a common mantra in tech. In the context of financial services, it is important to remember that these “things” are people and their money. “

In October, OCC candidate Saul Omarova was hurry to submit his university thesis on Marxism by Senate Republicans. The OCC, in coordination with other regulators, is expected to publish advice to banks on how to hold cryptocurrency assets soon. Hsu started scrutinize Tether’s commercial paper reserves in January.