U.S. financial authorities are preparing to play a more active role in overseeing the 1.5 trillion U.S. dollar currency Cryptocurrency marketThere is growing concern that the lack of proper supervision may harm the interests of depositors and investors.
The new efforts reflect a break with the Trump administration, which in some cases encourages the use of cryptocurrencies in the financial system. But as US regulators work to determine who has the legal power to monitor turbulent markets, it may take time for them to achieve results.
In an interview with the Financial Times, Michael Hsu, who was appointed as the acting auditor of the currency this month, said that he hopes that U.S. officials will work together to set a “regulatory boundary” for cryptocurrencies.
“It really boils down to inter-agency coordination,” said Xu, the director of the Ministry of Finance, who oversees the National Bank. “When talking with some of my colleagues, I am interested in coordinating more of these things.”
This year, cryptocurrency has been riding a roller coaster. In February, after the price of Bitcoin soared Tesla founder Elon Musk Said that the company has invested 1.5 billion U.S. dollars in cryptocurrency and set a record high of more than 60,000 U.S. dollars in April.
but Price plummet After Chinese regulators issued a signal to crack down on the use of digital coins, Musk withdrew the move to allow Bitcoin to be used to pay for Tesla cars on the grounds of environmental issues. Other cryptocurrencies have experienced similar fluctuations.
One sign of the new approach in the United States is the first inter-agency crypto “sprint” team meeting held this month. Officials from the three major federal bank regulators-the Office of the Auditor General of Currency, the Federal Reserve and the Federal Reserve attended the meeting. Deposit insurance company.
Xu said that the team’s goal was not to formulate policies, but to “put some ideas before the organization for consideration” because they tried to catch up Cryptocurrencys.
“It’s small and very advanced,” Hsu said of the working group. “The idea is that time is of the essence. If time is too long, it will become more difficult.”
The US Securities and Exchange Commission and the Commodity Futures Trading Commission also discussed how to protect investors in the crypto market.
SEC Chairman Gary Gensler told a House committee last week that “our current system has loopholes,” which suggests that legislation may be needed to specify which regulator should oversee cryptocurrency transactions.
Gensler stated that his goal is to “provide similar protection for the exchanges where you trade crypto assets on the New York Stock Exchange or Nasdaq.”
Gensler stated that the Ministry of Finance has been focusing on “anti-money laundering and preventing illegal activities” in the crypto market. U.S. Treasury Secretary Janet Yellen has stated that she is worried that Bitcoin is “often used for illegal financing.”
By installing Hsu on the OCC, Yellen also marked a change in encryption methods. In his own words, “My core is professional civil servants and bank supervisors.” His predecessors to the OCC under Donald Trump include Brian Brooks, the former chief legal officer of the cryptocurrency exchange Coinbase and now the CEO of Binance. The United States, a rival cryptocurrency exchange.
As one of Hsu’s first actions in the OCC, he asked staff to review the Trump-era decision to grant a national trust charter to companies that provide custodial services for cryptocurrencies.
Although Xu believes that innovations such as blockchain technology used in cryptocurrencies have no turning back, he testified in Congress this month that his current enthusiasm for banking innovation reminded him of the years before the financial crisis.
The danger is that new and improved technologies will lead to “a large and less regulated shadow banking system.” He said that nowadays, fintech and technology platforms are designing payment processing tools, which “bring great hope”, “but there are also risks.”
“For me, it’s hard not to feel a little familiar,” Xu told lawmakers.