Michael Hsu, the Acting Comptroller of the Currency, recently said that the US regulatory agencies have to collaborate more in order to regulate the cryptocurrency industry. Essentially, the Comptroller requested that regulatory bodies create a ‘regulatory perimeter’ for cryptos and digital assets.
Hsu recently said that the US regulators have to take a more active role when it comes to establishing rules and order in the crypto sector. As always, the prime goal is to minimize risks for consumers and investors, be they institutional or retail participants. He said,
It really comes down to coordinating across the agencies. Just in talking to some of my peers, there is interest in coordinating a lot more of these things.
A new approach to regulating crypto
According to Hsu, the first meeting of the inter-agency “sprint” team focused on the crypto sector took place earlier in May. The team consists of representatives of 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 it is “senior,” and it is tasked with coming up with various ideas that will then be presented to other agencies to consider.
This marks a different approach from formulating a policy, which many may have expected from such a group. But, Hsu stressed that the crypto sector is growing and advancing at a major speed, and that this is the regulator’s last chance to react in time.
If they don’t acknowledge this as a wake up call, regulating the sector in the future will be much, much harder. The time is of the essence, and the regulatory authorities have to react before the industry grows too big.
Similar warnings and way of thinking also came from the US SEC’s new chairman, Gary Gensler. Like Hsu, Gensler also believes that the US lacks robust regulatory guidelines for cryptocurrency assets. Gensler also highlighted gaps in the system regarding crypto, noting that the Treasury recently focused on AML and guarding against illicit activity.