OCC’s Hsu says regulators ‘spend too much time’ on crypto: Reuters
US Acting Comptroller of the Currency (OCC) Michael Hsu has expressed concern that regulators are spending “too much time on crypto,” rather than more pressing issues, such as technology and banking.
The crypto-skeptic OCC chief made the comments during an interview with Reuters on Oct. 13, when he outlined a concern that crypto “occupies a lot of brain space for a lot of people” in the regulatory community.
Hsu has been at the helm of the OCC since May 2021 and serves as Administrator of the Federal Banking System and Chief Financial Officer of the OCC.
During his tenure, he has called for greater oversight of crypto firms and standards around stablecoins, while stressing the need for a cautious approach to crypto regulation due to “red flags” with the sector’s rapid growth.
“We’re spending too much time on crypto,” he told Reuters, adding that “it’s interesting, it has hard issues … but relative to other technology and banking issues, I think we’re now kind of overweight crypto .”
Hsu went on to explain that there are other areas that need to be focused on at the moment, particularly related to fintech, which he stressed last month required immediate oversight to avoid a “serious problem or crisis” due to the sector’s rampant expansion, adding to :
“The persistence of the occupation of brain space, it’s starting to worry me now that we’re not spending that time and attention on something else.”
The OCC chief said he believes fintech is the future and therefore needs the right time and consideration to help the sector thrive sustainably.
“This is the future, so let’s get the future right,” he said.
These sentiments stand in stark contrast to Hsu’s views on crypto, given that he described the sector as “an immature industry based on an immature technology,” during a lecture at a roundtable at Harvard Law School on October 11.
Related: Rep. McHenry gives progress report on stablecoin legislation, says it’s an ‘ugly baby’
Hsu also outlined concerns with the crypto sector’s apparent fear of missing out (FOMO) syndrome, which he argued promotes wild speculation as opposed to innovation.
“Promises of innovation and inclusion often mask crypto’s promotion of a gold rush sentiment that exploits people’s fear of missing out on the next Google or Amazon.”
“My skepticism about crypto stems from a frustration that the most promising innovations have been displaced by hype and a fixation on commerce,” Hsu added.
