US Federal Reserve Vice Chairman Michael Barr, amid a wave of defaults caused by the collapse of Terra, demanded that Congress develop regulation for stablecoins.
During his speech at the Brookings Banking Policy Institute’s annual Clearinghouse Conference, Michael Barr stated that he takes a tough stance on the regulation of cryptocurrencies.
“I believe that Congress must work as quickly as possible to pass much needed legislation and bring stablecoins, especially those intended for use as legal tender, into the perimeter of prudential regulation,” he said.
With the rise of cryptoassets in a fast-growing and volatile market, participants may come under the illusion that they understand new products, however, this is not the case, Barr said. The Fed plans to work with banking regulators to ensure that crypto activities are properly regulated within banks.
He was supported by the acting head of the Office of the Comptroller of the Currency (OCC), Michael Hsu, who said that his office plans to protect confidence in the banking sector against the backdrop of the development of cryptocurrencies.
“I had a different point of view and saw red flags in the rapid growth of the crypto industry. Under my leadership, the OCC has taken an “overcautious” approach to regulating cryptocurrencies,” he said.
Hsu reaffirmed a past statement by the OSS that crypto transactions are allowed for banks “provided they can demonstrate that they have controls in place to conduct business safely and securely.”
Recall that in April, Michael Barr was appointed to the post of vice chairman of the US Federal Reserve by Joseph Biden. Previously, Barr, who was notable for tough rhetoric regarding cryptocurrencies, served as a consultant at Ripple.
Source: Bits
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