Acting currency auditor Michael Hsu says tighter regulation of cryptocurrencies is needed

In his intervention in the American Fintech Council 2021 Political Summit, the acting auditor of the currency, Michael J. Hsu called for stronger regulation of universal crypto companies.

“Large universal cryptocurrency companies, especially high volume stablecoin issuers, should have comprehensive and consolidated oversight. At the same time, federal and state banking regulators should prioritize the development of prudential policies, staff, and approaches to keep these companies on the verge of banking regulation. This would clearly differentiate safe and sound cryptocurrency companies from those that are only partially regulated and have a history of control failures, such as Binance and Tether.

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

“The rapid expansion and blending of wholesale and retail activities at some cryptocurrency companies begs the question of whether there should be a Glass-Steagall-like separation of cryptocurrency activities.”

Glass-Steagall was a federal act of 1933 that separated investment banking from commercial banking and was repealed in 1999. Ultimately, Hsu warned: “In the cryptocurrency space, the rapid growth in users and overall market value has only been outpaced by the rise in scams and consumer complaints. ‘Move fast and break things’ is a common mantra in technology. In the context of financial services, it is important to remember that these ‘things’ are people and their money. “

Acting currency auditor Michael Hsu says tighter regulation of cryptocurrencies is needed
Acting currency auditor Michael Hsu says tighter regulation of cryptocurrencies is needed

In October the OCC candidate, Pillar Omarowa, was pressured by the Republicans in the Senate, will hold his university thesis on Marxism. It is expected that the OCC, in consultation with other regulators, will issue guidelines for banks in the near future how to hold cryptocurrency assets. Hsu began investigating Tether’s commercial paper stocks in January.

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