Michael Hsu: It’s time to restart the crypto industry

US acting comptroller of the currency Michael Hsu has kept his cool amid the crypto crash, arguing that the time has come for a “cryptocurrency industry reset”.

Hsu is one of the few top financiers not to outright criticize recent events surrounding the TerraUSD crash which sent ripples across the entire cryptocurrency market.

The crash of TerraUSD, which wiped $60bn of value of the crypto market in one week, was the long overdue wakeup call that everyone has been waiting for, according to Hsu.

He has called some forms of crypto transactions a Ponzi scheme and fraud but is confident that the May 9 crash can now be used to do some good.

Addressing the Digital Chamber of Commerce on Tuesday, Hsu said: “The recent collapse of the TerraUSD stablecoin and associated sell-off in crypto markets has shown that hype-driven growth can lead to bubbles, harm consumers, and crowd out productive innovation.”

Hsu said that many of the cryptocurrencies out there were based on “hype” and relied on people actively believing that the currencies had value to begin with. This is a risk and a problem that the industry and regulators may now come together to solve.

Despite the exposure of mainstream finances to cryptocurrencies, no bank is currently under stress because of any ties with crypto investments.

What’s abundantly clear is that the current pricing of cryptocurrencies is “not to be trusted”, and that a more pragmatic approach to the sector is necessary to avoid huge price swings and financial instability.

You can stay safe using your cryptocurrencies by simply visiting 1xBit, FortuneJack or Bitcasino.io.

Source

Updated: 05/26/2022 — 13:00