U.S. Comptroller thinks regulators are spending too much time on crypto

Michael Hsu, the acting Comptroller of the Currency (OCC) says that he is worried about the degree of attention that is received by crypto from United States regulators.

Speaking to Reuters, the bank regulator expressed his concerns over the time and energy being devoted to cryptocurrencies by lawmakers and regulators alike. 

“The persistence of the occupation of brain space, it’s starting to worry me now that we’re not spending that time and attention on some other things.” said Hsu.

The other things that Hsu is referring to are banking and other financial technologies, which he believes are being compromised in favor of blockchain technology.

While the OCC chief accepted that crypto has some “thorny issues” that require the attention of regulators, he believes that for other technology and banking issues, the attention given to crypto is undue. 

Hsu’s outlook on crypto

Michael Hsu took command of the OCC in May 2021 and has been serving as administrator for the federal banking system and chief economic officer. 

During his time at the OCC, Hsu has actively participated in policies surrounding the crypto industry. Earlier this year, he issued a statement detailing the standards that stablecoins should be held to.

In November 2021, while taking cognizance of the growing popularity of crypto, Hsu called for increased supervision in order to prevent crypto firms from acting like banks. 

While speaking at Harvard Law School earlier this week, Hsu described the crypto industry as “an immature industry based on an immature technology.”

All hands on crypto

Ever since President Joe Biden released the executive order on crypto, a number of U.S. agencies have become involved with the industry, including the SEC, CFTC, OFAC, OCC, Department of Treasury among others. 

Lawmakers too have started diverting their time and attention to this emerging technology, both in form of support and criticism. The upcoming November midterm elections have only intensified that attention.

On one hand, blockchain groups and associations are lobbying pro-crypto candidates in order to soften the administration’s stance on the industry. On the other hand, some lawmakers are riding the terra collapse wave, calling for greater scrutiny and regulation.