The last week has not been a good one in the crypto scene as BTC has lost about half its value. This was highly unexpected as the giant crypto has been performing pretty well. It has, as a result, raised the eyebrows of US regulators to find a way of getting their hand in it.
Most financial regulators are still uncertain how they can be part and regulate amidst volatile markets, according to a Bloomberg report done on May 20th. The report also confirms that banking regulators on Capitol Hill are investigating various ways to regulate volatile markets.
Randal Quarles, the Federal Reserve’s Vice Chairman of Supervision, confirmed that most federal agencies are working on the right regulatory approach to create a framework that will be a referral point. The SEC and US authorities are still working on the negative impacts of cryptocurrencies, such as money laundering, market manipulation, and cyber attacks.
Even though the crypto markets are highly volatile, many are attracted to read because of the good returns. This means that financial regulators should watch out as many will be washed away with the trend.
So far, there are plans to set up an inter-agency task force on crypto tokens by the acting Comptroller of the Currency Michael Hsu and other regulators.
Sherrod Brown, the Senate Banking Committee Chairman, expressed his concerns about the volatility of cryptocurrencies. His main problem is that it might pose a danger to the market if it’s not regulated. Brown wrote a letter to Michael expressing his concern about financial and non-financial companies getting charters from the OCC’s authority. He mentioned some specific companies such as Paxos, Protego and Anchorage, which were given the National Trust charters from the previous management. Brown accused the former OCC head, citing that it did not have the proper requirements to present itself as a bank to the public. He recommends that the OCC should work on its provisions on the approval of charters to non-bank entities.
At the beginning of the month, SEC chairman Gary Gensler recommended that all lawmakers give the SEC authority to govern crypto exchanges.
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