Issuers of "stable coins" should be equated with depository institutions with mandatory deposit insurance. A similar point of view was expressed by the head of the OCC as part of the US Treasury, Michael Hsu.
The official's opinion reflects the idea developed by the Working Group on Financial Markets under the President of the United States (PWG), which is presented in the report on the risks associated with stablecoins.
The document was published in November 2021. The PWG includes OCC employees. At congressional hearings in February, the proposals were criticized.
According to the report, in addition to compliance with capital and liquidity requirements, organizations will be supervised at the federal level.
During his speech, Hsu rejected alternative options for regulating issuers of stablecoins. He explained that their implementation would lead to an increase in the risks of the collapse of an organization and the "infection" of the sector.
The head of the OCC admitted that the full application of all requirements would be burdensome for issuers of "stable coins" who are only engaged in their issuance and storage of their collateral.
The official also suggested that an individual set of regulatory and supervisory requirements could balance stability with efficiency. This will be possible under the condition of strict regulation of activities and risk profile.
Earlier, Michael Hsu allowed the growth of confidence in stablecoins with proper supervision. The regulator promised to submit additional recommendations in 2022 regarding the integration of cryptocurrencies into the product lines of banks.
Recall that in April 2022, the head of the SEC, Gary Gensler, called for increased supervision over issuers of "stable coins".
At the beginning of the year, a group of FDIC-insured financial institutions, the USDF Consortium, announced plans to promote a "regulated" stablecoin.