The head of the OCC urged not to rush to regulate cryptocurrencies
Supervisory authorities should not rush to regulate the cryptocurrency industry, adhering to high standards in their work. This opinion was expressed by the acting head of the OCC, Michael Hsu.
During a speech at Harvard Law School, Hsu noted that agencies need to "learn and adapt intelligently" to ensure safety and fairness in the industry. In his opinion, regulators are subject to FOMO in the context of digital assets and therefore are in a hurry.
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“In dozens of private conversations I’ve had with bankers, academics, regulators and politicians, they have admitted that they don’t really understand or trust cryptocurrencies as they exist today. However, they feel pressure to join in order to avoid falling behind or be perceived as opposed to progress,” Hsu said.
Two approaches to regulation
According to him, there are two approaches to regulation: taming and accommodation. The official expressed concern that the US authorities chose the second option. Close cooperation between departments can correct the situation, he believes.
Hsu also added that he remains a crypto skeptic, but pointed out the importance of blockchain development.
“My skepticism about cryptocurrencies stems from frustration that the most promising innovations have been superseded by hype and obsession with trading,” he explained.
Previously, Michael Hsu allowed the growth of confidence in stablecoins with proper supervision. The regulator promised in 2022 to provide additional recommendations regarding the integration of cryptocurrencies into the product lines of banks.
In April, the official supported tougher regulation of issuers of "stablecoins" and called for them to be equated with depository institutions with mandatory deposit insurance.