OCC’s Hsu: Crypto regulation would support innovation

Acting Comptroller of the Currency Michael Hsu warned that stablecoins are at risk of experiencing the equivalent of a bank run and called for stricter regulation to promote stability.

OCC: In a speech endorsing a coordinated regulatory approach to digital assets, Hsu said regulation would lend credibility to stablecoins and lay a more stable foundation for further innovation.

CFTC: In a separate speech on digital assets, the Commodity Futures Trading Commission’s Dawn Stump said that agency needs to update its regulatory standards instead of imposing penalties on innovative companies that run afoul of its rules. She cited areas in need of adapted regulations, including trading platforms and clearinghouses.

More: The OCC in November issued an interpretive letter reminding banks that the permissibility of engaging in crypto activities is conditional on them demonstrating that they can do so safely and soundly. The same day, regulators said they plan to provide greater regulatory clarity on crypto-related activities in 2022.

ICBA Position: ICBA said in a comment letter last year that a coordinated regulatory approach could help address risks, dispel confusion in the marketplace, and prompt more community banks to explore digital asset products and services to address customer needs.