Cryptocurrency Statement from the US Currency Regulatory Office (OCC)!

Michael Hsu, acting chairman of the U.S. Office of the Currency Supervisory (OCC), said that since Terra (LUNA) and FTX went bankrupt this year, U.S. banks have to cryptocurrencies He said his interest had waned.

U.S. Currency Regulatory Office: “Corporate Interest in Cryptocurrencies Has Died”

On the subject, Hsu said:

“Overall I can clearly say there was more interest before Terra/LUNA and FTX than after Terra/LUNA and FTX.”

Hsu’s banking institution, the U.S. Currency Supervisory Office, released its “Semi-Annual Risk Perspective” report on Thursday, which highlights crypto risks more prominently.

In the report, the agency featured a new chapter on digital assets as “a special issue in emerging risks” and criticized the industry, saying its risk management practices “lack of maturity”:

“Most crypto market participants seem unprepared for the stress and surprises this year, which has resulted in significant losses for millions of consumers.”

According to the OCC guidance, national banks that are regulated by the agency and represent the majority of major US credit institutions are not allowed to enter the new crypto business without receiving confirmation from the agency that they are doing so securely.

While most crypto activity in banks has so far focused on holding digital assets for customers, some Wall Street firms have experimented with stablecoins and other uses of blockchain technology.

Constantly criticizing the industry, Hsu said this year’s events “revealed that crypto industry risk management practices are weak, stablecoins may not be stable, and the risk of crisis contagion within the crypto industry is high.”

*Not investment advice.