Several senators are asking for a rescission and more comprehensive updates on the Office of the Comptroller of the Currency’s digital asset guidance, citing volatile market conditions and greater risk for financial institutions.
An independent office within the Treasury Department, the OCC oversees banking activity and ensures regulatory compliance. Acting Comptroller Michael Hsu was asked to limit cryptocurrency transactions within the banking system by Sens. Elizabeth Warren, D-Mass; Dick Durbin, D-Ill.; Bernie Sanders, I-Vt.; and Sheldon Whitehouse, D-RI.
“In light of recent turmoil in the crypto market, we are concerned that the OCC’s actions on crypto may have exposed the banking system to unnecessary risk, and ask that you withdraw existing interpretive letters that have permitted banks to engage in certain crypto-related activities,” the letter reads.
Lawmakers specifically targeted a series of interpretive letters the OCC previously issued to banks that allowed them to engage in digital currency transactions––provided a bank can prove the transactions are financially sound.
Letters 1170, 1172, 1174, and 1179 all permit banks to engage in cryptocurrency transactions in what lawmakers say is “unfettered” and “problematic” behavior. They reference the recent volatility in cryptocurrency markets, namely the fluctuating prices of digital coins, as the key reason warranting more careful oversight.
“We are concerned that the OCC has failed to properly address the shortcomings of the preceding interpretive letters and the risks associated with crypto-related banking activities, which have grown more severe in recent months.”
The senators ask for the withdrawal of the OCC’s letters regarding cryptocurrency transaction permissions followed by coordination with the Federal Deposit Insurance Corporation and Federal Reserve to implement a stronger consumer protection framework regarding cryptocurrencies.
The letter also asks for a complete list of banks regulated by the OCC that are currency providing cryptocurrency deposit and holding services, total dollar amounts of cryptocurrency custodies currently deposited in participating banks, and other information surrounding digital currency transactions.
A spokesperson for the OCC told Nextgov that while the OCC does not comment on congressional correspondences, Hsu has previously advocated for a strong, coordinated federal approach to prevent risks associated with cryptocurrency banking.
“To the extent the OCC’s prior communications have been interpreted as tacit encouragement to engage in crypto activities, the forthcoming releases will clarify that safety and soundness is paramount,” he said in remarks before the Federal Reserve Bank of Philadelphia.
The federal government has been increasingly keen on exploring regulations for the booming cryptocurrency market to prevent broad destabilization in the financial system.
While regulation is typically met with pushback by industry players, some crypto firms welcome the oversight. Georgia Quinn, general counsel at the first OCC-approved crypto trading platform Anchorage Digital, said that more regulations ensure a safer digital currency industry. She also said that rescinding the OCC’s letters permitting cryptocurrency transactions would decentivize firms like Anchorage from seeking federal charters.
“Recent calls for the OCC to withdraw its crypto guidance for banks would result in fewer institutions seeking federal banking charters, and fewer consumer protections as a result,” she said in a statement. “If we truly want to protect consumers, we need to pave a workable path forward for regulated institutions to provide crypto services, which was the very intent of the OCC’s guidance.”
Banks’ Ability to Conduct Cryptocurrency Transactions Comes Under Senators’ Fire & Latest News Update
Banks’ Ability to Conduct Cryptocurrency Transactions Comes Under Senators’ Fire & More Live News
All this news that I have made and shared for you people, you will like it very much and in it we keep bringing topics for you people like every time so that you keep getting news information like trending topics and you It is our goal to be able to get
all kinds of news without going through us so that we can reach you the latest and best news for free so that you can move ahead further by getting the information of that news together with you. Later on, we will continue
to give information about more today world news update types of latest news through posts on our website so that you always keep moving forward in that news and whatever kind of information will be there, it will definitely be conveyed to you people.
Banks’ Ability to Conduct Cryptocurrency Transactions Comes Under Senators’ Fire & More News Today
All this news that I have brought up to you or will be the most different and best news that you people are not going to get anywhere, along with the information Trending News, Breaking News, Health News, Science News, Sports News, Entertainment News, Technology News, Business News, World News of this made available to all of you so that you are always connected with the news, stay ahead in the matter and keep getting today news all types of news for free till today so that you can get the news by getting it. Always take two steps forward
Credit Goes To News Website – This Original Content Owner News Website . This Is Not My Content So If You Want To Read Original Content You Can Follow Below Links