Head of the OCC Wants Sound Regulation of Crypto Firms

Even if the crypto business has evolved beyond its infancy, some of the challenges it faces today can be traced back to when it was still in its infancy. One such issue is the lack of regulation and oversight. Which has been a problem for the sector specifically because state and federal regulators want to maintain control within their domains.

However, while these rules are effective in achieving their primary goal; there is still room for improvement at the state and federal levels in terms of collaboration.

To back up his statement, Comptroller of the Currency Michael Hsu has urged regulators to keep an eye on crypto firms across the country.

The head of the OCC has suggested regulation authorities collaborate and avoid competition

In the Bank of Philadelphia’s hearing, the OCC director said his department aims to closely monitor cryptocurrency enterprises. He noted that a single regulator may watch over a crypto business and its branches to reduce potential hazards.

The current regulatory framework, according to veteran compliance expert Hsu, aids corporations by allowing them to easily avoid legal obligations.

Hsu also stated that regulatory authorities throughout the United States are not receptive to coordinated supervision. Hence, resulting in gaps in coverage and regulation. Hsu believes regulators should work together rather than competing. He said the OCC would be open to more comprehensive and consolidated regulatory actions to bring the concept to reality.

The OCC will search for methods to implement surveillance

The OCC boss said the regulatory body will find practical ways to build and implement an oversight framework. However, during regulatory examinations, he stated that a single agency would handle a large crypto firm. This will promote transparency and faith between firms and regulators.

The OCC head also urged stakeholders to examine the 2008 financial crisis in order to avoid a repeat crash in the cryptocurrency industry. As a result, they’ll be better positioned to manage some of the dangers that come with holding digital assets.

In his request, he stated that a unified strategy to regulation would have avoided consumers like those who used AIG’s subsidiary in New York during the financial crisis.