Senator Elizabeth Warren (D-Mass.) is circulating a letter amongst her Senate colleagues that may withdraw authorized steering for banks holding and buying and selling cryptocurrencies, Bloomberg News reported Aug. 4.

The letter reportedly calls the Office of the Comptroller of the Currency (OCC) to work with the Federal Reserve (Fed) and the Federal Deposit Insurance Corp. (FDIC) in changing some Trump-era rules on crypto custodial companies with extra consumer-centric approaches.   

Citing to an aide for the senator, a member of the Senate Banking Committee, Bloomberg reported that the senator is gathering signatures from her colleagues earlier than the ultimate model is distributed to the OCC. 

Known particulars from the letter present that Warren is worried that the OCC has didn’t correctly handle the dangers related to crypto-related banking actions, in line with Bloomberg.

The letter reportedly has a collection of questions for the OCC, together with naming the regulated banks presently providing crypto-related companies and the estimated complete quantity of these actions.

The Acting Comptroller responds.

When requested concerning the concern, the Acting comptroller of the OCC, Michael Hsu, mentioned he had not obtained any letter, though it could be an fascinating matter to reply to, Bloomberg reported.

When interviewed at the Philadelphia Federal Reserve’s Sixth Annual Fintech Conference on Thursday, Michael responded by saying:

“I am a very strong believer that anything that comes into the banking system in crypto has to be safe, sound and fair, and we’re going to do what’s necessary in a way that’s sustainable, durable, robust. I think we’re doing a pretty good job. A whole bunch of stuff just happened, and the banking system is in pretty good shape, knock on wood. I think part of that is the actions we’ve taken.”

US stance on banks providing crypto custodial companies

In the final 12 months of the Trump administration, the OCC established {that a} nationwide financial institution would possibly present cryptocurrency custody companies on prospects’ behalf and permissible banking companies to any lawful enterprise they select, together with cryptocurrency companies, as long as they successfully handle the dangers and adjust to relevant legislation, Bloomberg reported.

This Biden administration reportedly clarified this rule when the brand new Acting Comptroller Hsu defined {that a} financial institution wants written notification of the supervisory workplace’s non-objection. 

Banks desirous about providing crypto custody have been additionally obligated to show their willingness to conduct these actions safely by placing up correct acceptable danger administration techniques. 


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