Acting Comptroller of the Currency, Brian Brooks, appeared in an interview with CNBC last week, sharing several concerns centered around crypto regulations. He has revealed that the incoming Biden administration might roll out new cryptocurrency regulations. This includes allowing national banks to custody cryptocurrencies that were initially taken up by the Trump administration.
Biden Administration Could Launch Newer Crypto Regulations
Brooks is the Administrator of the federal banking system and Chief Officer of the Office of the Comptroller of the Currency (OCC). The OCC currently supervises almost 1,200 national banks, federal savings associations, and federal branches of foreign banks.
In July 2020, the OCC allowed banks in the U.S. to provide cryptocurrency custody services in the interest of consumer protection.
Brian Brooks, in his interview, mentions that the government intends to make it safer for people to custody in national banks:
“We’ve talked about banks supporting some of these stablecoin projects. If those protections aren’t in place, I really worry about the environments for these kinds of things. That’s what I’m most focused on. How do we preserve the safety for the people who participate in that market.”
He also stressed the importance of cryptocurrency regulations to prevent money laundering and terrorism financing, and how the banking system can prevent this:
“One path forward is that we find ways of addressing money laundering risks and we find ways of addressing terrorism financing which I think can be done. But we make this safe for the consumers and investors who participate, that’s why the banking system has such an important role to play.”
Protecting Consumer Interest and Safety
Brian Brooks further emphasized on government’s role to assure that markets are well-regulated so that people’s transaction remains safe. He also added that people holding cryptocurrencies need to know that their assets are safe without the necessary risk involved:
“That’s why it’s important to people that they be able to custody their assets in a bank, for example, the same way you might custody your stock certificates or any other assets that you own.”
Brian Brooks further reveals that Congress leaders are urging the incoming Biden administration to launch some of the new crypto regulations in the interest of consumer protection and safety.