OCC’s Hsu: Banks Should Warn Crypto
Recent crypto issues have only added to the resistance of acting head of the Office of the Comptroller of the Currency (OCC), Michael Hsu, to allow lenders unrestricted access to digital asset markets, a writes CoinDesk Thursday, June 23.
Hsu has been reluctant to add crypto to the broader financial system, and it has been a major hurdle in the industry’s push for more general regulation. So far, he’s stuck to his guns.
CoinDesk quoted him for saying that there are “certain vulnerabilities and risks” that warrant a “cautious and cautious approach.”
Hsu spoke on a call with reporters about the OCC’s semi-annual risk outlook, which highlighted how digital assets could pose a danger to lenders.
“It kind of reinforced where we’ve been all this time,” Hsu said.
He nodded to earlier advice from the agency, which asked bankers to get OCC approval before delving into other crypto business. He added that he intends to take a more deliberate and cautious approach to crypto, as he has done thus far.
Crypto regulation has been a hot topic, with various agencies pushing for more control over it all. PYMNTS spoke about a recent bipartisan bill between Sens. Cynthia Lummis and Kirsten Gillibrand, who would have defined most digital assets as commodities rather than securities.
See also: A Bill Giving Regulatory Control To The CFTC Would Reshape Crypto
This delighted the Commodity Futures Trading Commission (CFTC), while the Securities and Exchange Commission (SEC) was less enthusiastic.
The two agencies have sparred over the right to regulate crypto for the past year. SEC Chairman Gary Gensler has called crypto the “Wild West” of finance, saying almost all tokens are securities.
But on news of the proposed bipartisan bill, CFTC Chairman Rostin Behnam said the bill was a “really good job” and said there would be a lot to say about what constitutes a commodity and a title.