Acting US Currency Controller Michael Hsu has urged fellow regulators not to lower their standards when dealing with cryptocurrencies under pressure to “be seen as anti-innovation too”. According to the OCC, there is a need to “learn and adapt wisely” to keep the industry safe and fair.

Shaw made his comment about cryptocurrencies during his speech at Harvard Law School on October 11. The full text of the speech was published on the official website of the OCC.

Using his own experience as an example, Xu criticized the fear of missing out on opportunity (FOMO), which he believes has had a major impact on the regulatory environment when it comes to cryptocurrencies:

“Promises of innovation and inclusiveness often mask the rush of gold for cryptocurrency that exploits people’s fear of missing out on the next Google or Amazon opportunity.”
Thinking of two types of approaches to any new industry – taming and assimilation – Hsu expressed concerns that regulators in the US had chosen a different approach and “over-adapted” the industry. What can remedy this situation is to deepen the cooperation between the many regulators. Hsu noted the office’s experience with the Federal Reserve, the Federal Deposit Insurance Corporation, and at least a few state bank regulators.

The official also identified three areas that require clarity regarding the supervisory outlook in the near term: the liquidity risk management of deposits by crypto asset firms, including stablecoin issuers; Retrieval activities, especially those related to facilitating the trading and holding of cryptocurrencies. For now, it is believed that the efforts of the authorities have made significant progress in only the first two.

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In conclusion, Xu agrees with his reputation as a crypto skeptic, but he has reservations about the promise of cryptocurrency, which he still considers important:

“Programmability, compositibility, and coding. Blockchain development may be related to promoting these ideas.”
Xu is known for his extremely cautious approach to cryptocurrencies and for repeatedly warning banks about their participation in the digital asset market.

Source: CoinTelegraph