OCC’s Stance on Cryptocurrency Firms
During a blockchain conference on Monday, Jonathan Gould, who leads the Office of the Comptroller of the Currency (OCC), emphasized that cryptocurrency firms applying for bank charters in the United States should not face any different scrutiny compared to traditional financial institutions. He pointed out that while some of these new applicants engage in innovative practices suitable for national trust banks, established processes such as electronic custody and safekeeping of assets have been in place for years.
Equal Treatment for Digital Assets
Gould argued against the notion of treating digital assets with special circumstances, asserting,
“There is simply no justification for considering digital assets differently.”
He added that it is vital for banks, including those already established as national trust banks, to adapt to modern technologies instead of adhering strictly to outdated methods.
Current Landscape of Crypto-focused Banks
The OCC, which oversees national banks, has historically viewed the involvement of cryptocurrency businesses in the banking system with caution. Currently, only two crypto-focused banks, Anchorage Digital and Erebor, hold an OCC-issued banking charter, having obtained it in 2021 and October respectively.
Growing Interest in Banking Charters
As part of advocating for the integration of crypto companies into the banking framework, Gould highlighted that the OCC has received 14 new banking applications this year alone—many of which are from organizations involved in digital asset operations. This number is comparable to the total applications received over the last four years, demonstrating a growing interest in obtaining a charter.
Importance of Chartering for Innovation
He expressed that granting charters is crucial for the banking system to keep pace with financial innovation and to bolster the economy, stating,
“Chartering helps ensure that the banking system continues to adapt while supporting modern economic activities.”
He insists that it is imperative for entities dealing with digital technologies to have pathways to federal oversight as banks.
Addressing Concerns from Traditional Banks
Moreover, Gould countered the apprehensions raised by traditional banks and financial groups regarding the oversight capabilities of the OCC concerning these crypto ventures. He warned that stifling the progress of these newcomers could hinder innovative solutions beneficial to consumers and local economies.
Gould assured the audience that the OCC has substantial experience supervising crypto-native national trust banks and mentioned the frequent discussions with existing national banks about exciting initiatives they are pursuing to introduce innovative products and services. His remarks reflect a strong conviction in the OCC’s ability to manage new entrants to the banking scene alongside the evolving activities of current banks equitably and effectively.
