New York, Wednesday, September 11, 2024 Acting Comptroller of the Currency Michael Hsu has called for more robust oversight of cryptocurrency risks, citing the 2022 market collapse, which saw a $2 trillion loss.
The Joint European Central Bank (ECB) and European Banking Authority (EBA) international conference on September 3 and 4 addressed the challenges of supervisory cooperation in the European financial system.
Speaking at an international conference hosted by the European Banking Authority and the European Central Bank, Hsu stressed the importance of proactive supervision as digital assets and fintech increasingly intersect with traditional banking.
Hsu highlighted the complex challenges that arise from the growing interplay between banks and nonbank entities, such as fintech firms.
The Acting Comptroller praised the effectiveness of existing supervisory measures during the 2022 crypto market crash, which did not significantly impact the banking sector.
He attributed this stability to rigorous supervisory practices that ensured crypto activities undertaken by banks were safe and sound.
Hsu emphasized the need for supervision to evolve in response to the expanding risks posed by digital innovation and financial technology. He argued for a risk-based approach to supervision that remains adaptable and vigilant amid the rapid changes in the financial landscape.
Over 150 representatives from European institutions, supervisory authorities, and other stakeholders gathered to discuss global financial challenges, improve cooperation among supervisors, and address emerging risks like climate change and technological advancements. The conference highlighted the importance of strong international collaboration to ensure the stability and effectiveness of the European banking sector.
Full text of the speech is here
