ACTING COC HSU: MORE CRYPTO REGULATION IS NEEDED

Last updated: June 20, 2025, 00:08 | Written by: Katie Haun

The world of cryptocurrency, often hailed as a decentralized revolution, is increasingly finding itself under the scrutinizing gaze of regulators worldwide. Crypto companies need a consolidated supervisor and a global regulatory framework to mitigate risk, Acting Comptroller of the Currency Michael Hsu told bankers Monday at a Washington conference.Among the most vocal proponents for increased oversight is Michael J.Hsu, the acting Comptroller of the Currency (CoC). Acting CoC Hsu: More crypto regulation is needed Great Chef 14.33 Bitcoin Hot News The regulator singled out Binance and Tether as allegedly risky players in the blockchain space.Hsu has consistently argued that the burgeoning crypto industry, particularly its larger and more interconnected players, necessitates a robust and comprehensive regulatory framework to mitigate potential risks to the broader financial system and protect consumers. Acting CoC Hsu: More crypto regulation is needed This post was originally published on this site The regulator singled out Binance and Tether as allegedly risky players in the blockchain space.His concerns, recently reiterated at the American Fintech Council's 2025 Policy Summit, center around the need for a consolidated supervisory approach and a globally harmonized set of rules. In remarks given at the American Fintech Council s 2025 Policy Summit, acting Comptroller of the Currency Michael J. Hsu called for greater regulation of universal crypto firms. Large, universal crypto firms especially issuers of highly-circulated stablecoins should embrace comprehensive, consolidated supervision.These regulations, he believes, are crucial to ensuring stability, preventing illicit activities, and fostering responsible innovation within the crypto space.Hsu's stance reflects a growing consensus among financial regulators that the ""Wild West"" era of crypto must give way to a more structured and accountable environment.As the crypto market continues to evolve and integrate with traditional finance, the call for stricter regulations is only likely to intensify.

The Urgent Need for Crypto Regulation: Hsu's Perspective

Acting Comptroller of the Currency Michael J. In remarks given at the American Fintech Council s 2025 Policy Summit, acting Comptroller of the Currency Michael J Hsu called for greater regulation of universal crypto firms. Large, universal crypto firms especially issuers of highly-circulated stablecoins should embrace comprehensive, consolidated supervision. At the same time, federal and state bank regulators should prioritizeHsu has been a consistent voice advocating for greater regulation of the cryptocurrency market. Related: Acting CoC Hsu: More crypto regulation is needed As Cointelegraph reported, the Biden administration s proposal aims to create a new special-purpose charter for stablecoin issuers, putting them in the same category as banks.He believes that the rapid growth and increasing complexity of the crypto ecosystem, particularly the rise of ""universal crypto firms,"" pose significant risks that need to be addressed proactively. Michael Hsu, the Acting Comptroller of the Currency, highlighted the importance of crypto regulatory proceedings in a thoughtful and cautious approach. The speedy settlement or chasing is not the appropriate solution when it comes to cryptocurrency, the official said.His arguments stem from a desire to protect consumers, maintain financial stability, and prevent the use of crypto for illicit activities.

At the American Fintech Council's 2025 Policy Summit, Hsu emphasized the need for a comprehensive approach to crypto regulation, focusing on the following key areas:

Consolidated Supervision: Hsu argues that large, universal crypto firms, especially those issuing widely circulated stablecoins, should be subject to comprehensive and consolidated supervision. During the American Fintech Council s 2025 Policy Summit, Michael J. Hsu, the Comptroller of the Currency passed the remarks and said that universal regulations are needed for the crypto firms. He also said that large crypto exchnages with a greater volume of trade need to embrace consolidation supervision.This would involve a single regulatory body overseeing all aspects of their operations, ensuring consistent application of rules and regulations.
Global Regulatory Framework: Given the cross-border nature of crypto transactions, Hsu believes that a global regulatory framework is essential.This would require international cooperation and coordination to establish consistent standards and prevent regulatory arbitrage.
Prudent Approach: Hsu cautions against rushing into regulatory solutions, emphasizing the need for a thoughtful and cautious approach.He believes that regulators should carefully consider the potential consequences of their actions and avoid unintended consequences.He discourages speedy settlements or chasing the next big thing, advocating for a well-researched strategy.

Targeting Risky Players: Binance and Tether

Hsu has specifically singled out Binance and Tether as examples of potentially risky players in the crypto space. Acting CoC Hsu: More crypto regulation is needed . PANews ｜ . The regulator singled out Binance and Tether as allegedly risky players in theWhile he hasn't explicitly detailed all the reasons for his concerns, it's likely related to their size, complexity, and the opacity of their operations.

For example, Tether, the issuer of the USDT stablecoin, has faced scrutiny over the reserves backing its coin. The regulator singled out Binance and Tether as allegedly risky players in the blockchain space. 819 Total views 8 Total shares In remarks given at the American Fintech Council s 2025 Policy Summit, acting Comptroller of the Currency Michael J. Hsu called for greater regulation of universal crypto firms. Large, universal crypto firms especially issuers of highly-circulated [ ]Concerns have been raised about the quality and liquidity of these reserves, leading to questions about Tether's ability to redeem USDT at par value during periods of market stress.The sheer size of Tether's market capitalization (often exceeding $100 billion) means that any instability could have broader implications for the crypto market.

Similarly, Binance, as one of the world's largest cryptocurrency exchanges, handles a significant volume of trades and offers a wide range of services, including derivatives trading.Its complex organizational structure and global operations raise concerns about regulatory oversight and potential conflicts of interest.Regulators are keen to ensure that Binance complies with anti-money laundering (AML) and know-your-customer (KYC) regulations and that its operations are transparent and secure.

The Biden Administration's Stablecoin Proposal: A Step Forward?

The Biden administration has proposed a new regulatory framework for stablecoins, which could be a significant step toward addressing some of the concerns raised by Hsu and other regulators.The proposal aims to create a special-purpose charter for stablecoin issuers, effectively putting them in the same category as banks.

This would subject stablecoin issuers to stricter regulatory requirements, including:

Capital requirements: Ensuring that stablecoin issuers have sufficient capital to absorb losses.
Liquidity requirements: Requiring stablecoin issuers to hold highly liquid assets to meet redemption demands.
Supervisory oversight: Subjecting stablecoin issuers to regular examinations and supervision by regulatory authorities.

By treating stablecoin issuers more like banks, the Biden administration aims to reduce the risks associated with these digital assets and promote greater stability in the crypto market.

Glass-Steagall and Crypto: A Potential Analogy?

Acting CoC Hsu has also pondered the applicability of the Glass-Steagall Act in the context of crypto.The Glass-Steagall Act, enacted in the wake of the Great Depression, separated commercial banking from investment banking to prevent banks from using depositors' money for speculative investments.

Hsu's contemplation suggests that he is considering whether similar restrictions should be placed on crypto firms to prevent them from engaging in risky activities that could jeopardize customer funds.This could involve separating activities like lending and trading from custody and payment services, ensuring that customer assets are protected from the risks associated with more speculative ventures.

The American Fintech Council's 2025 Policy Summit: A Platform for Discussion

The American Fintech Council's 2025 Policy Summit provided a valuable platform for discussing the future of crypto regulation.Hsu's remarks at the summit underscored the urgency and importance of addressing the risks associated with the crypto market.The summit also brought together other industry leaders, policymakers, and regulators to share their perspectives and explore potential solutions.

Events like the American Fintech Council's summit are crucial for fostering dialogue and collaboration between stakeholders.By bringing together different perspectives, these events can help shape a more informed and effective regulatory framework for the crypto industry.

What Kind of Crypto Regulation Is Needed?

Defining the precise nature of the crypto regulations is a complex task, as regulations must be adaptable to an ever-changing landscape. Acting CoC Hsu: More crypto regulation is neededIt's not simply about implementing old rules; it's about crafting a system that protects investors, promotes innovation, and adapts to future technologies.

Key considerations for effective crypto regulation:

Clarity and Consistency: Regulations should be clear, consistent, and easily understood by both industry participants and consumers.Ambiguous or conflicting regulations can create confusion and uncertainty, hindering innovation.
Risk-Based Approach: Regulations should be tailored to the specific risks posed by different crypto activities.This means that higher-risk activities, such as leveraged trading, should be subject to stricter regulations than lower-risk activities, such as simple custody services.
Technology Neutrality: Regulations should be technology-neutral, meaning that they should not favor or discriminate against specific technologies.This will ensure that regulations remain relevant as the crypto industry evolves.
International Cooperation: Given the global nature of crypto, international cooperation is essential to ensure that regulations are harmonized across jurisdictions. In remarks given on the American Fintech Council s 2025 Coverage Summit, performing Comptroller of the Foreign money Michael J. Hsu referred to as for higherThis will prevent regulatory arbitrage and promote a level playing field for all participants.
Innovation-Friendly: Regulations should be designed to encourage innovation while mitigating risks.This means that regulators should be open to experimenting with new approaches and technologies.

Examples of Regulatory Approaches Being Considered:

Licensing and Registration: Requiring crypto firms to obtain licenses and register with regulatory authorities.This would allow regulators to monitor their activities and ensure compliance with regulations.
Capital Requirements: Requiring crypto firms to hold a certain amount of capital to absorb losses. In remarks given at the American Fintech Council s 2025 Policy Summit, acting Comptroller of the Currency Michael J. Hsu called for greater regulation of universal crypto firms.This would protect customers in the event of a firm failure.
KYC/AML Requirements: Requiring crypto firms to verify the identities of their customers and monitor transactions for suspicious activity.This would help prevent the use of crypto for illicit purposes.
Custody Rules: Establishing rules for the custody of crypto assets, ensuring that customer funds are protected from theft or loss.
Market Surveillance: Implementing market surveillance mechanisms to detect and prevent market manipulation.

Why is Crypto Regulation So Difficult?

The complexities of crypto regulation stem from several factors:

Decentralization: The decentralized nature of many crypto projects makes it difficult to identify and regulate the responsible parties.
Anonymity: The anonymity afforded by some crypto assets makes it challenging to track transactions and prevent illicit activities.
Rapid Innovation: The crypto industry is rapidly evolving, making it difficult for regulators to keep pace with new technologies and business models.
Global Reach: The global reach of crypto means that regulations need to be harmonized across jurisdictions.
Lack of Understanding: Many regulators and policymakers still lack a deep understanding of crypto technology and its potential implications.

The Potential Benefits of Effective Crypto Regulation

Despite the challenges, effective crypto regulation could bring several benefits:

Increased Investor Protection: Regulations would help protect investors from fraud, scams, and market manipulation.
Greater Financial Stability: Regulations would reduce the risk of crypto-related shocks to the broader financial system.
Reduced Illicit Activity: Regulations would help prevent the use of crypto for money laundering, terrorism financing, and other illicit activities.
Increased Institutional Adoption: Regulations would provide greater clarity and certainty, encouraging institutional investors to enter the crypto market.
Promoted Innovation: Regulations would foster a more stable and predictable environment, encouraging responsible innovation in the crypto space.

What Can Individuals Do in the Meantime?

While the regulatory landscape continues to evolve, individuals can take steps to protect themselves and participate responsibly in the crypto market:

Do Your Research: Before investing in any crypto asset, thoroughly research the project, its team, and its potential risks.
Be Wary of Scams: Be cautious of investment opportunities that promise guaranteed returns or seem too good to be true.
Use Reputable Exchanges: Choose reputable cryptocurrency exchanges with strong security measures and a track record of protecting customer funds.
Secure Your Wallet: Use a secure wallet to store your crypto assets and protect your private keys. Crypto mining Acting CoC Hsu: More crypto regulation is neededConsider using hardware wallets for added security.
Understand the Risks: Be aware of the risks associated with crypto investing, including volatility, fraud, and regulatory uncertainty.
Only Invest What You Can Afford to Lose: Never invest more money than you can afford to lose.
Stay Informed: Keep up-to-date with the latest news and developments in the crypto industry.

The Future of Crypto Regulation: A Look Ahead

The future of crypto regulation is uncertain, but it's clear that regulators around the world are paying close attention to the industry.As the crypto market continues to grow and evolve, we can expect to see more regulatory developments in the coming years.

Some potential future trends in crypto regulation include:

Increased International Cooperation: We are likely to see more international cooperation and coordination on crypto regulation, as countries work together to establish consistent standards and prevent regulatory arbitrage.
Focus on Stablecoins: Stablecoins are likely to remain a key focus of regulators, given their potential to disrupt the traditional financial system.
Regulation of DeFi: Decentralized finance (DeFi) is another area that is likely to attract increased regulatory attention, as regulators grapple with the challenges of regulating decentralized and autonomous systems.
Integration with Traditional Finance: As crypto becomes more integrated with traditional finance, we can expect to see regulations that bridge the gap between the two worlds.
Focus on Consumer Protection: Consumer protection is likely to remain a key priority for regulators, as they seek to protect investors from fraud and scams.

Conclusion: A Balanced Approach is Key

Acting CoC Hsu's call for more crypto regulation highlights the growing recognition that the crypto industry needs to be brought under a more robust and comprehensive regulatory framework.While regulation can sometimes be seen as stifling innovation, it is essential for protecting consumers, maintaining financial stability, and preventing illicit activities.The challenge lies in finding the right balance between fostering innovation and mitigating risks. Crypto : Le hard fork Chang de Cardano est un succ s et passe une gouvernance d centralis e Les exchanges crypto cachent l ampleur r elle des liquidations depuis 3 ans ! Les baleines accumulent les bitcoins : les wallets avec 100 BTC atteignent leur plus haut niveau depuis 17 moisRegulations should be clear, consistent, and technology-neutral, and they should be designed to encourage responsible innovation while protecting investors and the broader financial system. Related: Acting CoC Hsu: More crypto regulation is needed As Cointelegraph reported, the Biden administrations proposal aims to create a new special-purpose charter for stablecoin issuers, putting them in the same category as banks.Ultimately, effective crypto regulation will be essential for ensuring the long-term sustainability and success of the crypto industry.As Michael Hsu points out, a consolidated supervisory approach and a globally harmonized set of rules are necessary to navigate the complexities of the crypto landscape. The regulator singled out Binance and Tether as allegedly risky players in the blockchain space.The journey towards more crypto regulation is just beginning, and its impact will shape the future of digital finance.