US Senator Elizabeth Warren is reportedly asking the Office of the Comptroller of the Currency (OCC) to withdraw crypto guidelines for banking institutions.
According to a new report by Bloomberg, Warren is circulating a letter in the Senate asking the OCC to rescind its guidelines, which include a number of interpretations, including the definition of stablecoins, that eventually allowed banks to offer crypto custody services to clients .
Warren calls on the OCC to work with other regulators to develop an approach “that adequately protects consumers and the safety and health of the banking system.”
Warren’s letter notes that the current OCC standards address the shortcomings and financial risks of banking institutions entering the world of cryptocurrency dare not give due consideration.
Says Warren’s letter, as quoted by Bloomberg,
“Cryptocurrencies are highly volatile assets that offer little or no protection to retail investors… We are concerned that the OCC has failed to address the shortcomings of previous interpretative letters and the risks associated with crypto-related banking, which have become more severe in recent months, to be treated appropriately.”
Though acting OCC chief Michael Hsu has yet to see the letter, he says he looks forward to replying to Warren.
Hsu says he believes the OCC has performed well so far as the banking system is still in “good shape” despite the recent turmoil in the crypto markets.
Says Hsu, according to the report,
“I firmly believe that anything that comes into the banking system in crypto must be secure, sound and fair and we will do what is necessary in a way that is sustainable and enduring, [and] is robust. I think we’re doing a pretty good job. See Exhibit A: A lot has happened and the banking system is in pretty good shape, knock on wood. I think that’s partly because of the actions we’ve taken.”
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Source: Crypto News Deutsch