Top Banking Regulator of The U.S. Seeks Public Inputs for Crypto Use In Financial Sector
While regulators across the world and the U.S. have been working out ways to deal with the crypto use in the mainstream financial sectors, one of the federal banking regulators in the U.S. has come up with a new idea.
The Office of the Comptroller of the Currency (OCC) is now seeking public inputs in regulating new technologies and other digital banking activities which also includes the use of cryptocurrencies and other blockchain tools.
The OCC said that it is reviewing its regulations around the digital banking activities to make sure that the regulations “continue to evolve with developments in the industry”. The notice was signed last week by Brian Brooks, the Acting Comptroller of the Currency.
In an email statement, the OCC spokesperson Bryan Hubbard said: “The request for stakeholder comment is part of the OCC’s commitment to responsible innovation and aligned with our understanding that banks must be able to evolve to meet the needs of the consumers, businesses, and communities that rely on them. Our role is to ensure there is a clear, supportive regulatory framework for banks to do so. The request for comments helps ensure we hear from stakeholders of all kinds on those important issues.”
The purpose of the notice was to reach out to the banks and understand what sort of crypto-related activities these banks and other financial institutions are currently engaged with. Besides, they also seek to know other activities wherein the customers engage and directly or indirectly impact banks.
The notice asks “What are the barriers or obstacles, if any, to further adoption of crypto-related activities in the banking industry? Are there specific activities that should be addressed in regulatory guidance, including regulations?”
Apart from the use of crypto assets and its related banking services the notice also ask the use of the distributed ledger technology (DLT) in banking services.
The filing notes: “What new payments technologies and processes should the OCC be aware of and what are the potential implications of these technologies and processes for the banking industry? How are new payments technologies and processes facilitated or hindered by existing regulatory frameworks?”
Speaking of the recent developments, Blockchain Association executive director Kristin Smith said, “It’s heartening to see a top banking regulator understand the power of cryptocurrency. The notice today indicates that Acting Comptroller Brooks is serious about modernizing banking regulations so that innovators can bring new solutions to the legacy financial system.”