The Acting Comptroller of the Currency (OCC) , Michael J. Hsu, reportedly emphasized the importance of collaboration and coordination with major crypto intermediaries, for a firmer grasp of the risks in the market.

Specifically, during his speech at the Transatlantic Finance Forum on the topic of “The Future of Crypto-Assets and Regulation”, Hsu reportedly pointed out different venues – crypto exchanges, non-fungible tokens (NFT) and metaverse – where any individual with an internet connection is able to make investments.

“The mainstreaming of crypto has occurred despite regulatory and legal uncertainty, and a series of scams, hacks, and other disruptive events. For financial regulators like me, this presents a host of questions. Where should regulatory attention be focused? What should be done? By whom? And why?”

Per Hsu, the Office of the Comptroller of the Currency (OCC) reportedly offers a reminder to banks for showing capability prior to obtaining federal approval to take part in crypto-related activities.

The acting Comptroller further emphasized the growing risks in crypto as the holders of USD-backed stablecoins trust that they can freely redeem their stablecoins for US dollars, at par, with no further inquiries from the platforms.

“What if, however, that trust were to waver or be lost? Stablecoin holders, knowing that the first to redeem would have the highest chance of getting their money back, would rationally redeem immediately.”

Hsu then urges for working with crypto intermediaries to bring down the possible loss of trust in crypto to the smallest.

“While banks and trust companies have a long and successful history of custodying and safeguarding assets, the technology underlying crypto and the associated governance with certain tokens present a host of novel issues warranting careful analysis and consideration” The Acting Comptroller further remarked.