Mr. Michael Su, Deputy Executive Director, Office of the Comptroller of the Currency (OCC) Said During a banking policy meeting that regulated banks must maintain a “prudent and prudent” approach to cryptocurrencies to prevent a contagion that would undermine the U.S. economy.
The OCC had approved banks to provide cryptocurrency-related services prior to Hsu’s appointment. However, crypto industry critic Su has led the agency to overturn the green light.
National banks and Federal Savings Associations (FSAs) seeking to offer cryptocurrencies must go through a rigorous vetting process to ensure that their activities are conducted in a “safe, sound and fair manner.” .
According to Hsu, this approach did not directly expose banks to the collapse of the Terra ecosystem, which has forced billions of cryptocurrency companies to file for bankruptcy. In contrast, the federally regulated banking system was largely unaffected.
“I think this is at least partly due to the prudent and cautious approach that we have taken and intend to maintain for the foreseeable future.”
Cryptos That Should Be Regulated Are Not Banned
The OCC has worked with other US government agencies such as the Federal Reserve and FDIC to ensure that the cryptocurrency industry is properly regulated.
In early May, the U.S. Congress introduced over 80 new bills, stepping up its efforts to bring clear regulation to cryptocurrencies. The bill addresses issues that span six categories, including taxation of cryptocurrencies, central bank digital currencies (CBDC), and the impact of China or Russia’s use of cryptocurrencies.
The US SEC and CFTC have also introduced a framework for hedge funds to report their cryptocurrency exposure. Regulators have confirmed that they may not be able to stop hedge funds from adding crypto assets to their portfolios, but should be properly accounted for.
U.S. Congressman Brad Sherman has also changed his bias against cryptocurrencies, acknowledging that they are getting too big and Congress is unlikely to ban them.
“[Congress] I didn’t ban it in the first place because I didn’t realize it was important, and I still don’t because there’s too much money and power behind it. ”
However, the crypto community argues that cryptocurrencies are unique and should be regulated differently, contrary to SEC Chairman Gensler’s view that cryptocurrencies should be treated like capital markets. .