Thread by @CaitlinLong_

1/ REMARKABLE SPEECH by US federal bank regulator abt #stablecoins (even cites yours truly at footnote 20). He discusses potential special-purpose, ring-fenced, non-lending banks as stablecoin issuers--ie, what #Wyoming SPDIs are. + nods to state efforts.
occ.gov/news-issuances…

2/ This feels like the moment when another national group (the ULC), which had initially been critical of #Wyoming jumping ahead to recognize digital assets in its commercial laws, started to replicate some of Wyoming's good ideas. The ULC later saluted Wyoming as a pioneer. 🙏🤠

3/ While I wouldn't ever expect the federal bank regulator to salute #Wyoming as pioneer here (there's a long history of fighting between the federal & state bank regulators), the nod he gives to the **IDEAS** is remarkable.

Here are snippets from OCC Acting Commissioner Hsu:

4/ "One way to mitigate these & other blockchain-specific risks would be to require that blockchain-based activities, such as #stablecoin issuance, be conducted in a *STANDALONE BANK-CHARTERED ENTITY*, separate from any other insured depository institution (IDI) subsidiary..."

5/ "If a #stablecoin entity were *TIGHTLY LIMITED TO* just issuing stablecoins and *HOLDING RESERVES* to meet redemptions, I would agree that the full application of all bank regulatory and supervisory requirements would be overly burdensome."

6/ "Provided that the activities and risk profile of a #stablecoin issuing bank could be *NARROWLY PRESCRIBED*, a *TAILORED SET OF BANK REGULATORY & SUPERVISORY REQUIREMENTS* could balance stability with efficiency."

7/ "I have been pleased with the level of engagement and collaboration with my peers, including *STATE BANKING SUPERVISORS.*

Again, in "bankspeak," that's as close as the federal regulator will probably ever come to saluting the work of #Wyoming's state banking supervisor.

8/ It's a remarkable speech for its nod to the **IDEAS** behind #Wyoming's special-purpose bank law. He didn't advocate for it, but he acknowledged it as a potential solution to the real problems posed when plugging #stablecoins into the traditional banking system.

#ideasmatter