Michael Hsu, the acting Comptroller of the Currency (OCC) for the United States, has voiced his worry that regulators are spending too much time on crypto rather than other, more serious problems, such as the banking system or technology.
The head of the OCC, known for his skepticism regarding cryptocurrencies, made these remarks during an interview with Reuters on October 13. During the conversation, he expressed his concern that cryptocurrencies occupy a lot of brain space for many people in the regulatory community.
Since May 2021, Hsu has been in charge of the Office of the Comptroller of the Currency (OCC). In this role, he is responsible for administering the federal banking system and serving as the OCC’s top economic officer.
All through his time in office has advocated for increased oversight of cryptocurrency businesses and the establishment of industry-wide standards for stablecoins. He has also emphasized the need for a cautious approach to cryptocurrency regulation due to the “red flags” raised by the sector’s rapid expansion.
Fintech Should be a Major Concern
He told Reuters that “we’re spending too much time on crypto,” adding that “it’s interesting, it has thorny issues… but relative to other technology and banking issues, I think we’re now kind of overweight crypto.”
Hsu also clarified that other issues need to be worked on right now, notably regarding fintech, something he underlined the previous month needed urgent control to prevent a serious problem or catastrophe owing to the sector’s wild development.
The head of the OCC also noted that he believes fintech is the future, and because of this, it requires enough time and consideration to assist the industry in growing sustainably.
He said, “This is the future; therefore, let’s do the future the correct way.”
In a lecture delivered on October 11 at a roundtable hosted by Harvard Law School, Hsu labeled the cryptocurrency business as “an immature enterprise built on an immature technology.” These thoughts contrast sharply with Hsu’s views on the subject of cryptocurrencies.
Hsu also raised concerns over the apparent fear of missing out (FOMO) mentality within the cryptocurrency industry. According to Hsu, this phenomenon encourages reckless speculation rather than innovation.
“My skepticism of crypto stems from a frustration that the most promising innovations have been crowded out by hype and a fixation on trading,” Hsu added.
