OCC Will Review Its Cryptocurrency-Related Guidance, Says the New Chief

OCC Will Review Its Cryptocurrency-Related Guidance, Says the New Chief

Michael Hsu – the new chief of the OCC – revealed that the US independent bureau plans to put under review its crypto guidelines offered over the past year. He added that all federal banks should provide interpretive letters and guidance, including issues around digital assets alongside pending matters.

Is Stance Towards Crypto Getting Tougher?

The United States Office of the Comptroller of Currency, which regulates all national banks and federal savings associations, will analyze its crypto guidelines. The new chief of the watchdog, Michael J. Hsu, announced that the agency would put under inspection its propositions put out in 2020.

Nevertheless, the upcoming review does not necessarily predict a pessimistic future for the crypto community. As Hsu noted in his statement, the OCC has supported and updated the banking industry, so what follows now is some analysis on those previous operations:

”At the OCC, the focus has been on encouraging responsible innovation… we created an Office of Innovation, updated the framework for chartering national banks and trust companies, and interpreted crypto custody services as part of the business of banking. I have asked staff to review these actions.”

OCC’s move could also aim to provide better support for the industry while also offering protection, balances, and checks. Hsu opined that fintech services and platforms will be a part of the future economy, but they must oblige with the general regulations.

OCC And Its Crypto-Friendly Guidelines

In the recent past, the US Office of the Comptroller of Currency demonstrated its support towards the crypto community. As CryptoPotato reported at the beginning of 2021, the OCC greenlighted American banks to use stablecoins and public blockchains for payments.

The regulator asserted that the move would increase the efficiency of the federal banking architecture while ensuring payment stability. The former comptroller of the watchdog Brian Brooks remarked at the time:

”Our letter removes any legal uncertainty about the authority of banks to connect to blockchains as validator nodes and thereby transact stablecoin payments on behalf of customers who are increasingly demanding the speed, efficiency, interoperability, and low cost associated with these products.”

Previously, the ex-chief of the bureau also stated that ”nobody is going to ban bitcoin.” Brooks noted that 2021 will be a very positive year for the digital assets in general:

”I think you are going to see a lot of good news for crypto.”

Featured Image Courtesy of Washington Monthly

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