Acting Comptroller of the Currency, Brian Brooks has revealed a way for the U.S.-based crypto custody service providers to operate as a federally-approved crypto bank. The crypto firms can operate as a bank by receiving a banking charter. Brooks had previously served as the chief legal officer at Coinbase exchange since May.
Brian Brooks Says More Crypto Banks Coming Soon
On Nov. 17 Brooks appeared in an interview with Forbes saying that there are currently three ways for payment companies to become federally chartered banks. First is by applying for a non-depository national bank charter, secondly, buying a depository institution, and lastly, applying for a National Trust charter.
The comptroller even emphasized that the Office of the Comptroller of the Currency is on its way to allow trust companies to become banks. Brooks says that cryptocurrency companies such as Anchorage, Coinbase Custody, and Gemini are already operating as trust companies under state-issued trust company charters. This makes them eligible to become federally approved banks.
Brooks further adds that the OCC has received many applications from crypto firms for converting these charters into National Bank Charter.
Banks to Provide Crypto Custody Service Soon
Brooks had announced four months back that the OCC would grant federally chartered banks to provide crypto custody services, saying:
“That’s where we see payments companies coming in the next couple of months. The magic non-depository payments charter, we don’t have that yet but are ready to do it, on the others, yes absolutely, we granted one charter and will have more shortly.”
Brooks made the statement on the same day Donald Trump announced on making Brooks as the full-time Acting Comptroller of the Currency. Even though Trump still has a few days left in the White House, his official statement nominated Brooks for a five-year term as Comptroller of the Currency.