More crypto regulations needed

In remarks at the US Fintech Council‘s 2021 Policy Summit, Acting Currency CEO Michael J. Hsu called for stricter regulation of global crypto companies.

“Large, popular crypto companies – especially issuers of highly circulating stablecoins – should accept consolidated, comprehensive oversight. At the same time, federal and state banking regulators should give priority to developing policies, staffing, and regulatory approaches to safely bring such businesses into the bank’s jurisdiction. This will clearly differentiate safe and sound crypto companies from those that are only partially regulated and have lost control in the past, like Binance and Tether. “

The Office of the Comptroller of the Currency is responsible for overseeing the state-regulated banks operating in the United States. Hsu further stated:

“The rapid expansion and consolidation of wholesale and retail at a number of crypto companies begs the question of whether Glass-Steagall-like stores in the crypto space should be separated.”

Glass-Steagall was federal law dating from 1933 preventing commercial banking and investment and repealed customer complaints in 1999. “Move fast and break things” is a common mantra in technology. When it comes to financial services, it is important to remember that these “things” are people and their money.

In October, OCC candidate Saul Omarova was pressured by the Senate Republicans to submit her bachelor thesis on Marxism. The OCC is expected to work with other regulators to issue guidelines for banks to hold crypto assets shortly. Hsu began reviewing Tether’s commercial paper reserves in January.