The Head of the US Office of the Comptroller of the Currency Came out Harshly: “DeFi is the Gold of Fools”


Michael Hsu, head of the US Office of the Comptroller of the Currency (OCC), has been heavily criticized during the period when the crypto currency markets were hit. Cryptocurrencies Hsu, which has recorded harsh rhetoric about it, has attracted a great reaction from the crypto community.

The President of the OCC Conveyed His Views On the Crypto Currency Sector

Michael Hsu at The Blockchain Association, the cryptocurrency industryhe noted that this reminds him of the 2008 financial crisis. Michael Hsu noted the following about the crypto currency field:

I saw idiots attacking gold in the 2008 financial crisis. I also foresee another version of this situation in cryptocurrencies and decentralized finance (DeFi).

DeFi is a crypto sector that provides many traditional financial services such as lending, receiving rewards without the need for centralized intermediaries. According to the data of the analytical platform Llama, the total value locked in the sector as of now has exceeded $ 160 billion. During the 2008 crisis, Hsu became one of the most front-line people working as an economist for the US Securities and Exchange Commission.

Michael Hsu compared the optimistic and deep academic climate around innovative credit derivatives with today’s in the crypto bracket:

Credit derivatives were largely based on mathematics and financial engineering. Intellectual difficulties and money brought the brightest minds from finance to physics. They believed that they were leading the financial revolution by creating a new class of assets using completely different models. Many DeFi platforms offer staking, farming or liquidity mining. These are all marketed as passive investment games.

Cryptos Are Under Scrutiny

Michael Hsu is with the financial world for the second time in a month crypto currencyhe handled the. In a Banking With Interest podcast, Hsu addressed the approach of the 2008 crisis with current policies.

However, the US Securities and Exchange Commission (SEC) is conducting similar review work. SEC Chairman Gary Gensler, in his last statement to the media DeFi he stated that his sector should be regulated. Gensler called crypto coins “extremely speculative” in his last speech.

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