Acting Controller of the Currency Michael J. Hsu highlighted the need for cooperation and coordination with major cryptocurrencies to better understand the risks in the growing $ 2 trillion cryptocurrency market.
Speaking at the Transatlantic Finance Forum on “The future of cryptocurrencies and regulation,” Xu pointed to various areas – crypto exchanges, non-fungible tokens (NFTs) and metaverse – where anyone with an Internet connection can invest. addition:
“The introduction of crypto took place despite regulatory and legal uncertainty, as well as a number of scams, hacks and other disruptive events. For financial regulators like me, this raises a number of questions. What should regulators be aware of? What should be done? Who? And why ? ”
According to Hsu, the Office of the Comptroller of the Currency (OCC) has reminded banks to demonstrate capabilities before obtaining federal approval to engage in crypto activities.
The acting reviewer also highlighted the increasing risk in cryptocurrencies as holders of USD-backed stack coins are confident that they can exchange their stack coins for USD on demand at par without question:
“What if trust is shaken or lost? Stablecoin holders, knowing that the first person to redeem would have a better chance of getting their money back, would wisely buy back immediately.
Hsu calls for cooperation with crypto intermediaries to minimize the consequences of losing confidence in crypto. “While banks and trust companies have a long and successful history of holding and protecting assets, the technology behind cryptography and the associated handling of some tokens presents a number of new issues that require careful analysis and consideration,” he concluded.
Related: US lawmaker proposes upcoming cryptocurrency legislation as Jerome Powell says the Fed will soon release digital currency report
During last week’s approval hearing, Governor Jerome Powell confirmed that the agency will issue a new report on digital currencies, despite the fact that they “are not quite where we need to be”.
As reported by Cointelegraph, Powell highlighted the ongoing changes in monetary policy that are expected to address policies related to the possible introduction of a digital central bank currency in the United States:
“The report is really ready to go, and I expect we will drop it – I do not want to do it again – in the coming weeks.”