TL; DR Breakdown
- OCC boss recommends close surveillance on crypto companies
- He says regulators should cooperate and foster interdependence
- The OCC will look for ways to implement new surveillance measures
The establishment of regulatory oversight has been one of the issues facing the crypto sector, especially as state and federal regulators want to exert dominance within their jurisdiction. However, while these regulations achieve the primary objective, there is still room to improve collaboration between regulators at the state and national levels. To back up this point, the acting boss of the Office of the Comptroller of the Currency, Michael Hsu, has urged regulators to keep close tabs on crypto companies across the country.
The OCC boss recommends collaboration among regulators
In his statement at the Bank of Philadelphia, the OCC boss says his office wants to maintain close surveillance on crypto firms. He mentioned that a single regulator could monitor a crypto company and its branches to mitigate certain risks. Hsu agrees that the current regulation helps companies since they can easily circumvent regulatory requirements through other branches of the same firm.
Hsu also mentioned that regulators across the United States are not open to consolidated supervision, causing lapses in surveillance and regulation. With this, Hsu hopes to encourage cooperation among regulators instead of competing with each other. He said the OCC would consider more comprehensive and consolidated regulatory measures to bring the vision to life.
Hsu says the OCC will look for ways to implement surveillance
In his statement, the OCC boss mentioned that if the regulatory body establishes the framework, it will look for a way to implement it. However, he noted that a single agency would handle a big crypto company during regulatory exercises. Hsu argues this will foster transparency and trust between companies and regulators.
The OCC boss also believes the country should look into the 2008 financial crisis to avoid a recurrence in the crypto sector. With this, they will be better equipped to handle some of the risks associated with holding digital assets. In his reference, he mentioned that a consolidated approach to regulation would have protected consumers such as users of a branch of the American International Group during the financial crisis.
Although Janet Yellen, the United States treasury secretary, handpicked Hsu to head the OCC, several reports suggest Saule Omarova was president Joe Biden’s initial choice to lead the body. Nominee, Omarova is expected to give a speech before the Senate Banking Committee on November 18.