OCC Comptroller calls for federal collaboration with crypto intermediaries
The Acting Comptroller of the Currency, Michael J. Hsu, highlighted the need for collaboration and coordination with large crypto intermediaries to better understand the risks within the growing $2 trillion cryptocurrency market.
Speaking at the Transatlantic Finance Forum on the topic of “The Future of Crypto-Assets and Regulation”, Hsu pointed out the various venues — crypto exchanges, nonfungible tokens (NFT) and metaverse — where anyone with an internet connection can invest, adding:
According to Hsu, the Office of the Comptroller of the Currency (OCC) reminded banks to demonstrate capability before getting federal permission to engage in crypto activities.
The acting Comptroller also highlighted the rising risks in crypto as the holders of USD-backed stablecoins trust that they can redeem their stablecoins for US dollars on demand, at par, with no questions asked:
Hsu calls for collaboration with crypto intermediaries to minimize the consequences of a loss of trust in crypto. “While banks and trust companies have a long and successful history of custodying and safeguarding assets, the technology underlying crypto and the associated governance with certain tokens present a host of novel issues warranting careful analysis and consideration,” he concluded.
Related: US lawmaker hints at upcoming crypto legislation as Jerome Powell says Fed will release report on digital currency soon
At his confirmation hearing last week, Federal Reserve chair Jerome Powell confirmed that the agency will release a new report on digital currencies despite not being “quite where we needed to get it.”
New digital currency legislation coming soon
As Cointelegraph reported, Powell highlighted ongoing changes in monetary policy, which is expected
Read more on cointelegraph.com
