{"id":59857,"date":"2022-04-08T18:48:36","date_gmt":"2022-04-08T15:48:36","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=59857"},"modified":"2025-09-05T00:14:21","modified_gmt":"2025-09-04T21:14:21","slug":"occ-chief-backs-tighter-regulation-of-stablecoin-issuers","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/occ-chief-backs-tighter-regulation-of-stablecoin-issuers\/","title":{"rendered":"OCC chief backs tighter regulation of stablecoin issuers"},"content":{"rendered":"<p>Issuers of \u201cstablecoins\u201d should be treated as depository institutions with mandatory deposit insurance. This view was expressed by the head of the <span data-descr=\"Office of the Comptroller of the Currency\" class=\"old_tooltip\">OCC<\/span> within the U.S. Treasury, Michael Hsu.<\/p>\n<p>The official&#8217;s view reflects the idea developed by the President&#8217;s Working Group on Financial Markets (PWG), which is laid out in the report on risks associated with stablecoins.<\/p>\n<p>The document <a href=\"https:\/\/u1f987.com\/en\/news\/u-s-treasury-releases-report-on-stablecoin-risks\">published<\/a> in November 2021. Members of the PWG included OCC staff. At congressional hearings in February, proposals <a href=\"https:\/\/u1f987.com\/en\/news\/us-congress-rejects-pwg-proposals-on-stablecoins\">were criticized<\/a>.<\/p>\n<p>According to the report, in addition to meeting capital and liquidity requirements, institutions <a href=\"https:\/\/u1f987.com\/en\/news\/us-congress-rejects-pwg-proposals-on-stablecoins\">will be subject to federal supervision<\/a>.<\/p>\n<p>In his remarks, Hsu rejected alternative regulatory options for stablecoin issuers. He explained that their implementation would increase the risk of the collapse of a given institution and sector contagion.<\/p>\n<p>The head of the OCC conceded that full application of all requirements would be burdensome for stablecoin issuers that are solely involved in their issuance and custody of collateral.<\/p>\n<p>The official also suggested that a tailored set of regulatory and supervisory requirements could balance stability with efficiency. This would be possible provided there is strict regulation of activity and risk profiles.<\/p>\n<p>Earlier, Michael Hsu <a href=\"https:\/\/u1f987.com\/en\/news\/us-banking-regulator-sees-potential-for-greater-trust-in-stablecoins-under-proper-oversight\">acknowledged<\/a> that trust in stablecoins could rise with proper oversight. The regulator <a href=\"https:\/\/u1f987.com\/en\/news\/us-banking-regulator-warns-of-crypto-adoption-risks\">pledged<\/a> in 2022 to publish additional recommendations regarding the integration of cryptocurrencies into banks&#8217; product lines.<\/p>\n<p>As noted in April 2022, <span data-descr=\"Securities and Exchange Commission (SEC)\" class=\"old_tooltip\">SEC<\/span> Chairman Gary Gensler <a href=\"https:\/\/u1f987.com\/en\/news\/sec-chief-calls-for-tougher-oversight-of-bitcoin-exchanges-and-stablecoin-issuers\">urged<\/a> tougher oversight of stablecoin issuers.<\/p>\n<p>Earlier this year, the insured <span data-descr=\"Federal Deposit Insurance Corporation (FDIC)\" class=\"old_tooltip\">FDIC<\/span> member financial institutions of the USDF Consortium <a href=\"https:\/\/u1f987.com\/en\/news\/group-of-u-s-banks-forms-consortium-to-issue-a-stablecoin\">announced plans<\/a> to promote a regulated stablecoin.<\/p>\n<p>Subscribe to ForkLog news on Telegram: <a href=\"https:\/\/t.me\/forklogfeed\" target=\"_blank\" rel=\"nofollow noopener\">ForkLog Feed<\/a> \u2014 the full news feed, <a href=\"https:\/\/telegram.me\/forklog\" target=\"_blank\" rel=\"nofollow noopener\">ForkLog<\/a> \u2014 the most important news, infographics and opinions<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Issuers of \u201cstablecoins\u201d should be treated as depository institutions with mandatory deposit insurance. This view was expressed by the head of the OCC in the U.S. Treasury, Michael Hsu.<\/p>\n","protected":false},"author":1,"featured_media":59858,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[36,807,26],"class_list":["post-59857","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-regulation","tag-stablecoins","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"18","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/59857","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=59857"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/59857\/revisions"}],"predecessor-version":[{"id":59859,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/59857\/revisions\/59859"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/59858"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=59857"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=59857"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=59857"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}