Acting Comptroller of the Currency Brian P. Brooks made the following statement today at the meeting of the Financial Stability Oversight Council (FSOC) with respect to the issuance of FSOC’s 2020 annual report:
I support issuance of the FSOC’s annual report and the recommendations set forth in the report. I thank the FSOC staff and staff of the other agencies for their hard work on this report. I believe that the FSOC’s recommendations strengthen the progress we have already made to enhance risk management and prudential controls in our financial system.
I’m particularly supportive of the report’s treatment of innovation. Financial innovation offers considerable benefits to consumers and providers of financial services by reducing costs, increasing the convenience of payments, and potentially increasing credit availability. Innovation can also create new risks that need to be understood. Such risks underscore the need for the development of oversight standards, appropriate regulation, and U.S. leadership. Some nations have begun exploring or using central bank digital currencies to enhance the global standing of their currencies and enable faster payments. Likewise, several nations have begun assessing whether and how privately issued stablecoins may facilitate faster and more efficient payments, provided that such activities are subject to appropriate regulation and oversight. Against this backdrop, it is important that U.S. regulators adopt an approach to digital assets that will provide for responsible innovation in a manner that is safe, fair, and compliant with all applicable laws. Providing clear guidance will accelerate the development of a 21st century financial system that is consistent with the changing needs of institutions and consumers within the U.S. and that is globally competitive.