Michael Hsu, the Acting Comptroller of the Currency, recently said that US regulatory agencies need to do more to regulate the cryptocurrency industry. Essentially, the Comptroller requested that regulatory bodies create a ‘regulatory perimeter’ for crypto and digital assets.
Hsu recently said that US regulators must play a more active role when it comes to establishing rules and order in the cryptocurrency sector. As always, the main objective is to minimize risks for consumers and investors, whether they are institutional or retail participants. He said,
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It really comes down to coordination between agencies. Just talking to some of my colleagues, there is interest in coordinating many more of these things.
A new approach to regulating cryptocurrencies
According to Hsu, the first meeting of the inter-agency “sprint” team focused on the cryptocurrency sector took place in early May. The team consists of representatives from several major financial institutions, including the Federal Reserve, the Federal Deposit Insurance Corporation, and the Comptroller’s own office.
The group is small, as Hsu also admits, but they are “senior” and tasked with coming up with various ideas that will then be presented to other agencies for their consideration.
This marks a different approach to policy formulation, which many may have expected from such a group. But, Hsu emphasized that the cryptocurrency sector is growing and advancing at great speed, and that this is the regulator’s last chance to react in time.
If they don’t recognize this as a wake-up call, regulating the sector in the future will be much, much more difficult. Time is of the essence and regulatory authorities have to react before the industry grows too large.
Similar warnings and mindsets also come from the new president of the US SEC, Gary Gensler. Like Hsu, Gensler also believes that the US lacks strong regulatory guidelines for crypto assets. Gensler also highlighted loopholes in the system regarding cryptocurrencies, noting that the Treasury recently focused on preventing money laundering and protecting against illicit activity.
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