Acting Comptroller Underscores the Need for Caution In Digital Asset Regulation

Acting Comptroller of the Currency Michael J. Hsu underscored the OCC's cautious approach to regulating digital markets.

At the Treasury Department's Financial Literacy and Education Commission's public meeting, Mr. Hsu pointed out that the majority of cryptocurrency investors are young, diverse and "underbanked." He highlighted recent "concerning" survey results that showed nearly 20 percent of cryptocurrency investors borrowed money to finance their investments.

Mr. Hsu argued that the recent cryptocurrency sell-off and its "knock-on" effects have reinforced the need to evaluate the risks associated with investing in cryptocurrency. Mr. Hsu stated that the OCC has issued reminders to national banks to conduct cryptocurrency activities in a safe and sound manner and to obtain a "supervisory non-objection" before engaging in new crypto-related activity.

Mr. Hsu stated that the OCC will continue to develop digital currency educational resources collaborating with the Financial Literacy and Education Commission in order "to advance financial health, access, and equity for all consumers."