Stablecoins, their usage, should be subject to standards-setting initiative, OCC’s Hsu recommends

Stablecoins and their usage should be subject to a standard-setting initiative similar to that undertaken by bodies that set touchstones for the Internet, the leader of the regulator of national banks said Wednesday.

In a statement, Comptroller of the Currency Michael J. Hsu, following his appearance at a conference on artificial intelligence hosted by the U.S. Department of Commerce, National Institute of Standards and Technology (NIST), FinRegLab, and the Stanford Institute for Human-Centered Artificial Intelligence, said stablecoins lack shared standards and are not interoperable. “Well-designed standards can promote inclusive and responsible innovation,” Hsu said, pointing to the Internet as an example.

He extended that view to stablecoins, to ensure they “are open and inclusive.”

“I believe a standard setting initiative similar to that undertaken by IETF (Internet Engineering Task Force) and W3C (World Wide Web Consortium) needs to be established, with representatives not just from crypto/Web3 firms, but also including academics and government,” Hsu said.

Hsu said his conversation at the event with Commerce Deputy Secretary Don Graves underscored the need for standards setting and “reflected the willingness of governmental bodies like NIST and the OCC to engage in such efforts.”

Acting Comptroller Issues Statement on Standards for Stablecoins