New OCC Head VS Crypto Regulations

On occasion, the financial watchdog published some vague guidelines, but most of its time was spent in trying to hunt down all ICOs that sold securities, and in warning the public against risks that crypto carries with it.

Things Are Changing Though…

On occasion, the financial watchdog published some vague guidelines, but most of its time was spent in trying to hunt down all ICOs that sold securities, and in warning the public against risks that crypto carries with it.

However, the US’ new Comptroller of the Currency (OCC), Michael Hsu, thinks that it is time to step up the regulatory game. Hsu decided to review crypto-related rule-making, following the departure of Brian Brooks.

I believe that Hsu is ready to make some changes in the crypto sector, although I can’t be sure whether that will be beneficial to the crypto industry or not. So far, Hsu only noted that there is a big concern regarding the past initiatives, as they may not have been done in full coordination with all stakeholders, nor do they appear to have been part of a broader strategy related to the regulatory perimeter.

The official argued that both of these tasks must be a priority now and that his focus will be on ensuring that all banks supervised by the OCC will operate in a sound and safe manner, meet the communities’ credit needs and that they will treat their customers fairly. Of course, while being fully compliant with the standing laws and regulations.

Warranted Concerns?

I understand the new Comptroller’s concern, given that the OCC made a number of regulatory decisions while under Brooks, including the authorization of the US banks to hold reserve currencies for stablecoins. The question now is what will Hsu’s team find when checking these actions and their legality. It may be that the banks will lose their ability to serve the crypto industry, but that is far from being a definitive outcome.

For the moment, all we can do is wait and see what Hsu’s team will discover, and how will the new Comptroller deal with those findings.

Do you believe that the new OCC head will make a move for the better regarding crypto regulations?

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