US Acting Comptroller of the Currency (OCC) Michael Hsu has raised concerns that regulators are spending “too much time on cryptocurrencies”, rather than on more pressing issues such as technology and banking..
The crypto-skeptical OCC chief made the comments during an interview with Reuters on Oct. 13, while outlining concerns that cryptocurrencies are “taking up a lot of brain space for a lot of people” in the regulatory community.
Hsu has been at the helm of the OCC since May 2021and serves as administrator of the federal banking system and economic director of the OCC.
During his tenure, he has called for increased oversight of crypto businesses and regulations around stablecoins, while stressing the need for a cautious approach to crypto regulation. due to “alarm signals” regarding the rapid growth of the sector.
“We are spending too much time on cryptocurrencies,” he told Reuters, adding that “it is interesting, it has thorny issues…but in relation to other technological and banking issues, I think we are now overlaying cryptocurrencies”.
Hsu went on to explain that there are other areas that need to be focused on at the moment, specifically fintech, which he stressed last month required immediate oversight to avoid a “major problem or crisis” due to the unbridled expansion of the sectoradding:
“The persistence of brain space occupation is starting to worry me now, because we’re not spending that time and attention on other things.”
The OCC chief said he believes fintech is the future and therefore needs the right time and considerations for the sector to prosper sustainably.
“This is the future, so let’s make the future right,” he said..
These sentiments contrast with Hsu’s views on cryptocurrencies, as he described the sector as “an immature industry based on immature technology.”during a Harvard Law School roundtable lecture on October 11.
Hsu also raised concerns about the apparent fear of being left out (FOMO) syndrome in the cryptocurrency sector.which he claims encourages wild speculation rather than innovation:
“The promises of innovation and inclusion often mask the promotion of cryptocurrencies in a gold rush environment that exploits people’s fear of being left out of the next Google or Amazon.”
“My skepticism towards cryptocurrencies stems from frustration that the most promising innovations have been displaced by hype and fixation on trading,” Hsu added..
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