Hsu: Crypto industry slowing progress on supervision

Crypto industry resistance and jurisdictions competing for crypto business have held up progress on consolidated supervision of cryptoassets, Acting Comptroller of the Currency Michael Hsu said.

Hsu Remarks: Addressing the Financial Stability Board, Hsu said the crypto industry has helped to block progress on implementing the FSB’s recommendations for comprehensive crypto oversight, which is based on the principle of “same activity, same risk, same regulation.” Nevertheless, collaboration among financial regulators can help ensure a common understanding of risks and promote high regulatory standards, Hsu said.

ICBA View: ICBA supports FSB and International Organization of Securities Commissions efforts to advance international cryptoasset regulation.

• In a 2022 comment letter on the FSB’s framework, ICBA endorsed consistent regulatory and supervisory standards, coordination across and within jurisdictions, and bringing global stablecoins within the regulatory perimeter.

• In a separate letter on IOSCO’s international baseline policy recommendations, ICBA said the proposals are prudent steps to safeguard the financial system against crypto risks.