OCC Needs to Provide Regulation Clarity to Protect Users and Businesses

The chair of Senate’s powerful committee in charge of banking, Sen. Mike Crapo (R-Idaho), has asked the Office of the Comptroller of the Currency (OCC) to update his committee on its recent Advanced Notice of Proposed Rulemaking in regards to crypto services.

In a letter dated September 1 and addressed to Brian Brooks, acting comptroller at OCC, Sen. Crapo says that it is vital to provide an update to the committee in regards to the office’s recent announcement that national banks, as well as federal savings associations, can provide crypto custody services.

The federal banking regulator had in June last year invited the public to provide their opinion in regards to how cryptocurrencies are used or treated within the financial industry.

The invitation saw about 90 banks, crypto firms, academia, as well as other organizations in the industry respond. Some major US banks stated that they were open to offering crypto services if there are clear regulations.

Crapo is asking the OCC to give the committee an update. “Provide the committee with an update on its findings and the next steps the OCC intends to take with this technology,” Crapo’s letter reads.

Crapo also urges the OCC to come up with clear and precise rules that will help the industry to grow rather than trampling its development.

“The U.S. should develop clear rules of the road that protect businesses and consumers without stifling future innovation,” the letter states.

Crapo explains that the crypto space is providing products as well as services that are diverse in the finance industry, which are not only inevitable but also beneficial. In this regard, Crapo urges the OCC to ensure that the regulations should allow the US to lead in its development.

Previously, Crapo, as the chair of the Banking Committee, has headed various Senate hearings on blockchain and cryptocurrency-related topics. A key area of focus for the committee has been the Facebook-led Libra project, which Crapo has raised concerns on whether the global stablecoin project should observe the US regulations.

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Author: Joseph Kibe

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