Mr. Michael J. Hsu, who is in charge of the business of the Office of the Comptroller of the United States of America, delivered a speech on January 13, 2022, in which he highlighted the advantages of regulating cryptocurrencies in general and stablecoins in particular.

He said regulation is a way to provide peace of mind and security for those who use this type of technology.

Speaking at the UK-US Financial Forum for Transatlantic Business, Hsu argued that the growth of the cryptocurrency industry has been so rapid that regulatory indifference in previous years is now unsustainable, and there is a need to work on a strong legal framework.

stated Hsu said that as more and more unbanked people started using cryptocurrencies as an alternative to the bank and became unaware of the need for trusted third parties to move money, more regulatory attention was needed before it was too late, and added:

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This popularization of crypto use occurred despite regulatory and legal uncertainty and a series of scams, hacking, and other disruptive events.

For financial regulators like myself, this raises a set of questions:

Where should regulatory attention be focused?

What must be completed? By whom? And why?

Crypto market regulation is a strategic matter:

The US has been looking for ways to gain more control over cryptocurrencies in an effort to prevent another potential danger from a geopolitical point of view: the fear of losing the hegemony of the dollar.

Already last year, the CEO of PayPal speculated that bitcoin could be used by China as a financial weapon.

Several politicians have also warned that cryptocurrencies could depreciate the dollar if early action is not taken.

The use of cryptocurrencies in the criminal world is also a frequently cited argument as a justification for tightening the screws.

Likewise, the recent infrastructure law proposed by Joe Biden could negatively affect the cryptocurrency industry due to the exaggerated requirements of KYC procedures.

Jerome Powell told this week that the report on the digital dollar is ready to be submitted, so this year could be pivotal for defining US regulatory policies for the cryptocurrency world.

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