United States regulators claim that crypto needs a regulatory perimeter. They added that this is essential since digital currencies are having a big role.
Crypto is currently rising in the market as various critics and analysts claimed that digital currencies will soon be the main mode of payment in the future. And now U.S. regulators claimed that crypto will soon have a bigger role in the market.
Because of this, the new OCC head said that crypto agencies will soon be required to set a regulatory perimeter for their digital coins. The U.S. financial authorities are preparing to take a more active role in regulating the $1.5tn cryptocurrency market as concern grows that a lack of proper oversight risks harming savers and investors.
The new efforts reflect a break with the Trump administration, which in some cases encouraged the use of crypto in the financial system. However, the U.S. regulators said that these actions will still take more time since they need to determine who has the legal authority to oversee the volatile market.
Cryptocurrencies to Have a Regulatory Perimeter?
Michael Hsu, who was installed this month as acting comptroller of the currency, said he hoped US officials would work together to set a “regulatory perimeter” for cryptocurrencies.
Hsu added that “it really comes down to coordinating across the agencies. Just in talking to some of my peers, there is interest in co-ordinating a lot more of these things.” This year, crypto really has a rough ride since it went up and down in the market.
Crypto’s value dramatically increases after Elon Musk promoted the use of it. However, its value also decreased after China regulators said that there is a crackdown on the use of the popular digital coins.
Because of this, the tech CEO of Tesla decided to support crypto payments to support the digital coins further. But, the giant automaker suddenly canceled its plan. Other cryptocurrencies have experienced similar volatility.
One sign of the new US approach came this month with the first meeting of an inter-agency digital currency “sprint” team, involving officials of the three leading federal bank regulators.
On the other hand, Hsu clarified that they are not planning to make a policy for the rising digital currency. He said that they only want to put some idea in front of the agencies, which they need to consider.
Aside from this, the Securities and Exchange Commission and the Commodity Futures Trading Commission have also discussed how to protect investors in the digital currency market. Meanwhile, Gary Gensler, the SEC chair, told a House committee last week that there are gaps in our current system, pointing to a potential need for legislation to specify which regulator should oversee crypto exchanges.
On the other hand, some sources claimed that the U.S. regulators want to implement a regulatory perimeter since the danger in the use of digital currency is also becoming more rampant. Since this payment mode relies on the internet, various companies will try to take advantage of it, especially since people are now trying to invest their savings in the digital coin market.