The acting director of the Office of the Comptroller of the Currency (OCC) believes crypto needs a single consolidated supervisor if future scandals are to be avoided.
Addressing the Institute of International Bankers in Washington D.C., Michael Hsu, the Comptroller of the OCC, stressed the need for home country supervision for crypto. He believes that the FTX collapse was similar to the Bank of Credit and Commerce International (BCCI) fall in the 1990s.
Both FTX and BCCI operated in different countries and lacked a home regulator.
Crypto is Everywhere, but Nowhere, Says Director
According to an article, Hsu argued, “By seemingly being everywhere and structuring entities in multiple jurisdictions, they (FTX and BCCI) were effectively nowhere and were able to evade meaningful regulation.”
Like FTX, Hsu said, “Currently, no crypto platforms are subject to consolidated supervision.” He clarified that not all global crypto companies would go down the path of FTX. But, they need to be overseen by a credible third party.
Hsu said, “We won’t be able to know which players are trustworthy and which aren’t until a credible third party, like a consolidated home country supervisor, can meaningfully oversee them.”
What is the OCC?
The OCC is a division of the Treasury that operates independently to supervise American banks. It is a prominent force in regulation. US Treasury Secretary Janet Yellen appointed Hsu as the acting Comptroller in May 2021.
In Oct. 2022, he believed that regulatory authorities were spending too much time on crypto. But, after the FTX collapse, OCC joined Gary Gensler in the crypto crackdown.
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