- Acting U.S. currency comptroller Michael Hsu has said that agencies must come together to regulate crypto
- Hsu said that there was desire to regulate the sector but warned that time is of the essence
- Former currency comptroller Brian Brooks was equally worried about DeFi regulation
The U.S. acting currency comptroller has said that U.S. financial regulators should work closer together to create a “regulatory perimeter” for the cryptocurrency market. In an interview with the Financial Times, Michael Hsu said that there was interest among the various agencies in coordinating regulation of the $1.5 trillion market, but this could be some years away as it cannot yet be determined who actually has responsibility over the various aspects of the ecosystem.
Hsu Warns That a Bigger Market is Harder to Regulate
Hsu, who was installed as currency comptroller last month following the departure of Brian Brooks, said that coordination across agencies was key to effectively regulating crypto, stating that “there is interest in coordinating a lot more of these things.” He added that the goal of his department was not to make policy on the matter of crypto regulation but instead to “put some ideas in front of the agencies to consider”, noting that time was of the essence because “if it’s too big (the crypto market) that (regulation) gets harder.”
Former Currency Comptroller Was Worried About DeFi Rules
Hsu has publicly stated his belief that the genie is out of the bottle as far as DeFi goes, telling a congressional testimony last month that the current enthusiasm for DeFi solutions reminded him of the years leading up to the financial crisis.
This echoes the thoughts of the outgoing Brooks, who in January stated his concern that regulation of “self-driving banks” could result in a “patchwork of inconsistent rules” with state and federal rules clashing if coordination is not consistent.