October 12, 2022

Acting OCC Comptroller Calls for Strong Interagency Coordination on Crypto Regulation

Acting OCC Comptroller Michael J. Hsu called for greater interagency and international coordination on cryptocurrency regulation to "ensure safety, soundness and fairness and encourage responsible innovation."

In remarks at Harvard Law School, Mr. Hsu said that regulatory regimes can differ from regulator to regulator (e.g., state versus federal, domestic versus international). He warned that the varying degrees of regulation blur the line between well-adapted and unduly accommodative regulation. Despite the public's "gold rush" mindset toward crypto, he said that regulators should "[stick] to [their] guns and not [lower] our standards when dealing with crypto." Mr. Hsu noted that the OCC has been proactively coordinating with other state, federal and international banking regulators to work towards establishing prudential standards for cryptocurrencies.

In the area of supervision, Mr. Hsu highlighted expectations that need more clarity in the short term: "(1) liquidity risk management of deposits from crypto-asset companies, including stablecoin issuers, (2) finder activities, especially related to crypto trade facilitation, and (3) crypto custody."