Office of Comptroller of the Currency says Stablecoins need to be regulated to provide confidence to holders.
Michael J. Hsu, the Acting Comptroller of the Currency, stressed the importance of cooperation and coordination with major crypto intermediaries to fully comprehend the threats within the $2 trillion cryptocurrency industry.
At the Transatlantic Finance Forum, Hsu, on the subject of "The Future of Crypto-Assets and Regulation," said that many technological developments such as cryptocurrency exchanges, nonfungible tokens (NFT), and the metaverse have changed the economy. Where anybody with internet access may invest in digital assets, adding:
Hundreds of organizations have emerged to provide wallet and custody services, to create new tokens, and to facilitate crypto trading. Credit and debit card issuers are offering Bitcoin rewards programs and facilitating crypto payments.
The Office of the Comptroller of the Currency (OCC) has warned banks to show competency before receiving government approval to participate in crypto businesses.
The acting Comptroller also mentioned the mounting dangers in crypto, citing the belief that holders of USD-backed stablecoins may redeem their stablecoins for US dollars at par on demand. According to Hsu:
Stablecoin issuers subject to bank regulation would give holders of those stablecoins confidence that those coins were as reliable and “money good” as bank deposits.
Although not being "exactly where we wanted to get it," Federal Reserve chair Jerome Powell stated during his confirmation hearing last week that the agency would produce a new study on digital currencies.
https://twitter.com/RepTomEmmer/status/1480924120653123596
Powell emphasized continuing monetary policy adjustments, which are likely to address policies around the US central bank's potential deployment of a digital currency.
What is the office of the Comptroller of the Currency?
The Office of the Comptroller of the Currency (OCC) is a distinct bureau within the United States Department of the Treasury that was created by the National Currency Act of 1863 and is responsible for chartering, regulating, and supervising all national banks and financial intermediaries, as well as federally licensed branches and agencies of foreign banks in the United States.