The Office of the Comptroller of the Currency (OCC) believes that the cryptocurrency industry is still very immature and unable to effectively manage risk.
The regulator of the US banking sector has published a semi-annual report in which it reported on the increasing risks in the cryptocurrency industry. The OCC said banks and other traditional financial institutions should be careful when dealing with crypto companies.
The report highlights several major issues related to the crypto industry: stablecoins are not always stable; the cryptocurrency industry does not know how to effectively manage risks; The interconnectedness of an industry takes its toll when one of the companies goes bankrupt.
In addition, the OCC is concerned about the lack of consistent and global regulation of the industry, the volatility of digital assets, and the increasing number of companies offering banking products and services using cryptocurrencies. All this can seriously affect financial and economic stability.
In general, the regulator believes that cryptocurrency firms still remain unprepared for bankruptcies and other shocks or stresses in the market. For anyone wishing to work in this area, the Office has advised a cautious and incremental approach.
Earlier, the US Securities and Exchange Commission (SEC) published a strategic plan for fiscal years 2022-2026 – one of the priorities in it was the development of a regulatory framework for the cryptocurrency industry.
Source: Bits
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