Speaking at a Wednesday meeting of the Exchequer Club – a group of senior economic and financial policy experts based in Washington, DC – incumbent currency president Michael Hsu outlined the comments on the issue of legitimate expectations in banks.
During the speech, Hsu made reducing inequality, adapting to digitalization, taking action against climate change and protecting against complacency among the top priorities of his office.
With regard to the regulatory challenges arising from the digitization of the financial system, the head of the Office of the Comptroller of the Currency (OCC) takes the listed decentralized and crypto-related financial activity (DeFi) among the innovations that drive change in the banking sector, not new ones Way to convey.
Hsu attributes previous failures by US financial regulators – such as the one that made the 2008 financial crisis possible – to the “deadlocked” nature of various regulators. The OCC chief also promoted the joint efforts of UnitedTreasury, the Federal Reserve, the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Federal Deposit Insurance Corporation and their offices to coordinate regulatory policies around digital assets.
However, the head of the OCC did not mention any concrete results of the work of the working group beyond the stablecoin report expected in the fall of this year.
In particular, Hsu said regulators “need to ensure that crypto / DeFi activities that take place within the banking system or are supported by banks are trustworthy”. With the bulk of decentralized funding taking place outside of the regulated banking system, it is unclear whether or not Hsu’s comments can be interpreted to reflect OCC’s drive to broaden its horizons in the banking sector.
OCC is an independent bureau within the US Treasury Department that oversees all federal and state-licensed branches of foreign banks in the country. Michael Hsu became currency editor in May of this year.
.