Too much innovation is dangerous for stablecoins

In a recent interview, Michael Hsu, administrator of the U.S. federal banking system and CEO of the Office of the Comptroller of the Currency (OCC), argued that when dealing with people's money, you have too many innovators. in the field it poses risks. “You want your money to be stable and reliable, you want it to be there in good times and bad and you don't have to think about it,” Hsu said. “If you innovate too much in that space, you'll get a wide range of results, some of which won't be good.”

Hsu commented in the wake of a recent report released by the president's working group on financial markets that recommended that stablecoin issuers should be regulated like banks. Many in the cryptocurrency industry argue that such a move would unjustly spot them, but Hsu said vulnerable populations could be at risk without greater safeguards.



“We want to be very careful who 'is in this space and why, and what the risks are for them, ”he said. Hsu cited a July-August survey by Morning Consult in which 37% of respondents said they own cryptocurrency compared to just 10% of banking consumers. "There is a risk that the people who are least able to handle it will lose their money," he said. “And I think we want to be very careful.”