Acting Comptroller of the Currency Issues Statement on FSOC’s Report on Digital Asset Financial Stability Risks and Regulation — 2022-10-03

WASHINGTON—Acting Comptroller of the Currency Michael J. Hsu today released the following statement in support of the Financial Stability Oversight Council’s (FSOC) Report on Digital Asset Financial Stability Risks and Regulation. I would like to start by thanking Secretary Yellen, the member agencies, and all the staff for carefully examining the dynamics and structures within crypto-asset markets against the existing regulatory frameworks to identify the most significant financial stability risks that crypto-assets, activities, and markets may pose to the broader financial system. I support the Report on Digital Asset Financial Stability Risks and Regulation and would like to draw special attention to the recommendations focused on minimizing regulatory arbitrage. We know from the 2008 financial crisis what happens when regulatory agencies fail to coordinate effectively on risks that cut across jurisdictional lines: an unlevel playing field emerges and financial stability risks grow in the shadows.