OCC’s Hsu Addresses Need for Cryptocurrency Oversight

Appearing before the Exchequer Club, a Washington, D.C.-based group of economic and financial policy professionals, acting Comptroller of the Currency Michael Hsu discussed trust in banking and pointed to the meteoric rise of cryptocurrency and a need to eliminate the siloed nature of U.S. regulatory bodies. Hsu said it is necessary for regulators to “ensure that crypto/decentralized finance activities that take place within the banking system or are facilitated by banks are trustworthy.” This follows a string of global activity around cryptocurrency, including new restrictions against crypto-mining and trading in parts of China, according to the South China Morning Post. Additionally, U.S. Securities and Exchange Commission Chair Gary Gensler made his first appearance before the Senate Banking Committee on Tuesday, where he defended enforcement of securities laws against certain crypto transactions and addressed regulatory clarity (see: SEC Chair Pushes for Additional Cryptocurrency Regulations). Similarly, the American Bankers Association wrote to the Basel Committee on Banking Supervision – which sets global standards – on Friday regarding “supervised financial institutions’ involvement in the crypto asset market” and “rational supervision.”