More Crypto Regulation Needed: Acting Comptroller Of The Currency, Hsu Says

Crypto regulation has been the topic of a number of debates for this year, as the explosion of the blockchain space attracted regulatory action from nearly every financial authority. In a recent announcement, acting Comptroller of the Currency, Michael J. Hsu, has called for increased crypto regulation. 

The announcement was made at the American Fintech Council’sCouncil’s 2021 Policy Summit, wherein Hsu laid emphasis on cryptocurrency-based services providers.

“Large, universal crypto firms—especially issuers of highly-circulated stablecoins—should embrace comprehensive, consolidated supervision. At the same time, federal and state bank regulators should prioritize the development of policies, staff, and supervisory approaches to bring such firms safely into the bank regulatory perimeter,” said Hsu.

Hsu pointed out the difference between regulated firms and those partially regulated saying, “This would clearly differentiate safe and sound crypto firms from those that are regulated only partially and have a history of control lapses, such as Binance and Tether,” said Hsu.

Crypto regulation is a matter of grave concern for authorities

The Office of the Comptroller of the Currency is responsible for maintaining its oversight on the federally chartered banks. 

“The rapid expansion and mixing of wholesale and retail activities at some crypto firms raise the question of whether there ought to be Glass-Steagall-like separation of activities in the crypto space,” added Hsu.

Glass-Steagall was a law passed in the year 1933 but was later repealed in the year 1999. Citing the law as an example, Hsu added, “In the cryptocurrency space, the rapid growth in users and total market value has only been matched by the growth in scams and consumer complaints. ”Move fast and break things” is a common mantra in tech. In the financial services context, it is important to remember that those “things” are people and their money.”

Crypto regulation is a major issue for US authorities, according to Michael J. Hsu, who became the acting Comptroller of the Currency on May 10th, 2021. “It is a tremendous honor to serve as Acting Comptroller of the Currency alongside those who ensure our federal banking system operates in a safe, sound, and fair manner,” Hsu said during his appointment. 

As TheCoinRise reported, there is a right way to regulate cryptocurrencies. In a recent turn of events, the Infrastructure Bill was passed in the House, knocking on the President’s door.