FTX episode illustrates need for ‘Home’ regulator: Top U.S Banking official

ambcrypto.com:

According to one of the United States’ most prominent banking officials, cryptocurrency companies that operate many organizations in various nations should be under the control of a single, consolidated “home” regulator. This, to prevent them from engaging in “games” meant to circumvent laws.

The words were delivered in prepared remarks by Michael Hsu , Acting Head of the Comptroller of the Currency (OCC), at the Institute of International Bankers conference on March 6 in Washington D.C.

The OCC is a division of the Treasury Department that oversees American banks and works to protect the stability of the nation’s financial system. It can approve or disapprove banks’ participation in crypto-related operations.

— IIB (@IIBnews) March 6, 2023

In his speech, Hsu offered “valuable lessons for crypto” on upholding global confidence from traditional banking.

He asserted that those operating with firms in several jurisdictions would “possibly play shell games” by arbitraging regulations. Thereafter, they’ll be able to “hide their genuine risk profiles” unless a crypto-firm is governed by one authority. He said,

“To be clear, not all global crypto players will do this. But we won’t be able to know which players are trustworthy and which aren’t until a credible third party, like a consolidated home country supervisor, can meaningfully oversee them.”

The failure of the cryptocurrency exchange FTX was cited as evidence of the necessity for a “home” regulator in the industry. Hsu compared the transaction to that of the now-defunct Bank of Credit and Commerce International (BCCI), a large international