Ask Permission, Not Forgiveness For Responsible Innovation: Acting Comptroller Hsu Discusses Tokenization And AI

In a speech given at the American Bankers Association's Risk and Compliance Conference on June 16th, Acting Comptroller Michael J. Hsu discussed the importance of responsible innovation in financial services, with a special focus on tokenization and artificial intelligence ("AI").

Acting Comptroller Hsu started his comments by remarking that, "[i]n banking, the responsible approach to innovation is the better way: by progressing in tightly controlled stages where the risks can be identified, measured, and managed at each stage, by building the brakes and the engine at the same time, and by working with regulators, instead of around them. This takes discipline and time. It requires engagement by, and trust in, risk managers and compliance professionals from the get-go through every step of the process."