The Senate Banking Committee and the House Financial Services Committee heard testimony on economic and regulatory developments from FRB Vice Chair for Supervision Michael S. Barr, FDIC Acting Chair Martin Gruenberg, Acting Comptroller Michael J. Hsu and NCUA Chair Todd M. Harper.
Acting Comptroller Michael J. Hsu encouraged investors to learn about responsible money management given the recent volatility in crypto markets. He urged investors to take a step back from social media to evaluate whether to continue investing in crypto assets.
The OCC established the Office of Financial Technology to "provide strategic leadership, vision, and perspective for the OCC's financial technology activities and related supervision."
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."
Acting Comptroller Michael J. Hsu urged regulators to monitor the nature of the relationship between TradFi and DeFi warning that applying traditional finance regulations and concepts to a decentralized cryptocurrency industry may downplay and disguise the significant risks associated with cryptocurrencies.