Issuers of “stable coins” should be equated with depository institutions with mandatory deposit insurance. Expressed by a similar point of view OCC Michael Hsu of the US Treasury Department.

The official’s view echoes an idea developed by the US President’s Financial Markets Working Group (PWG) and presented in a report on the risks associated with stablecoins.

The document was published in November 2021. PWG included OCC personnel. The proposals were criticized at a congressional hearing in February.

In addition to meeting capital and liquidity requirements, organizations will be overseen at the federal level, according to the report.

During the conversation, Hsu dismissed alternative options for regulating stablecoin issuers. He explained that their implementation would lead to an increase in the risks of the collapse of an organization and the “contagion” of the industry.

The OCC chairman acknowledged that full implementation of all requirements would be burdensome for “stablecoin” issuers who are only concerned with issuing and storing their security.

He also suggested that a tailor-made set of regulatory and supervisory requirements could balance stability with efficiency. This will be possible subject to strict regulation of activities and risk profile.

Earlier, Michael Hsu allowed reliance on stablecoins to grow with proper supervision. The regulator promised to provide additional recommendations regarding the integration of cryptocurrencies into banks’ product lines in 2022.

Remember, head in April 2022 SEC Gary Gensler has called for increased surveillance of “stablecoin” issuers.

At the beginning of the year, the insured group FDIC The USDF Consortium of financial institutions has announced its plans to promote a “regulated” stablecoin.