In remarks made at the 2021 Public Policy Summit convened by the American Council on Financial Technology, Acting Currency Controller Michael J. Xu in the largest regulation of global cryptocurrency companies.
“The large global crypto firms – especially the issuers of the very common stablecoins – must adopt comprehensive and standardized oversight. At the same time, federal and state regulators should prioritize policy development, human resources and supervisory approaches to safely include such firms in bank regulators. Wednesday. “This will separate safe and secure crypto companies from those that are only partially regulated and have a history of control vulnerabilities such as Binance and Tether.
The Office of the Comptroller’s Office is responsible for the regulatory oversight of federally accredited banks operating in the United States. Xu further announced:
“The rapid and confusing expansion of wholesale and retail activity in some crypto companies raises the question of whether there should be a Glass-Steagall-style shutdown in the crypto realm.”
Glass-Steagall was a federal law of 1933 that prohibited investment and commercial banking and was repealed in 1999. In the end, Xu warned, “In crypto, the rapid growth in users and overall market value has only been accompanied by an increase in fraud and consumer demand. complaints “Move fast and hack” is a common mantra in technology. In the context of financial services, it is important to remember that “things” are people and money.
In October, Republicans in the Senate forced OCC candidate Saul Omarova to hand in a bachelor’s thesis in Marxism. The OCC is expected to issue instructions to banks on how to store cryptocurrencies in coordination with other regulators. Xu started looking into Tether’s reserve of certificates in January.