Earlier this month OCC Interim Head Michael Hsu discussed “Modernizing the Financial Regulatory Perimeter”. Interesting points were raised regarding the market capitalization of the fintech industry today, and where it was 5 years ago. In addition, the lack of consolidated supervision over fintech and crypto firms, and that historically an industry crisis was the driver of further consolidation were also mentioned.
Rather than waiting for the next crisis, he suggested, “to be effective, the regulatory agencies, including state regulators, must learn to interact differently and define success differently. There needs to be less regulatory competition and more cooperation, less parochialism, and more teamwork, less go-it alone independence and more interdependence’’.