Financial authorities within the United States are preparing to take a heavier initiative in regulating the $1.5 trillion dollar cryptocurrency market. On Sunday, the Financial Times shared an interview with the US Treasury’s recently appointed Acting Comptroller of the Currency, Michael Hsu, who told FT the US government is looking into regulating cryptocurrencies due to concern of an apparent lack of oversight and regulatory process, stating “it really comes down to coordinating across the agencies. Just in talking to some of my peers, there is interest in coordinating a lot more of these things.”
New regulations could take time to become workable, as currently there’s no regulatory presence. With no clear boundaries on the use of cryptocurrency, paired with the fact that it’s still a relatively new concept. The United States has yet to set conditions for the governance of such transactions.
There has been some regulation at the state level, with the New York Attorney General’s office taking a shot at Bitfinex and Tether demanding new requirements after an investigation in February 2021. Bitfinex and Tether are now required to cease trading within the State of New York and submit to mandatory reporting. This is the result of an investigation that showed Bitfinex and Tether deceived clients by overstating reserves while hiding approximately $850 Million in losses around the globe.
Whether regulation is needed for the investment side of cryptocurrency or just regular transactions was not elaborated upon, only that cryptocurrency needs further regulation and oversight.
Information for this briefing was found via Financial Times and the NYAG office. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.