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New US Regulator and former Coinbase Lawyer Head Crypto invites banks to work together.
In its announcement on June 4, the Currency Control Office (CCO) seeks to assess the interaction between banks and cryptographic firms.
Banks meet Crypto
The Proposed Regulations Advanced Notice requires banks and industry leaders to answer a series of questions — in particular:
“What activities related to cryptocurrencies or cryptoassets are financial services companies or bank customers engaged in and what are the barriers or obstacles to further adoption of crypto-related activities in the banking industry?”
In his address to Cointelegraph the current Announcement by the Acting Controller Brian Brooks has described the attempt to bridge the gap between finance and cryptography. He anticipated the study:
“Ways the cryptocurrency regime needs banking services, ways that they need to transact across the bank rails, etc. So we have affirmatively come out and said, give us information about what crypto needs from banking and banking needs from crypto, because we want to really do something in that space.”
The first week of Crypto vet Brooks' office head
In the United States Treasury, the OCC is the major banking regulator. The recent announcement is part of a flourishing event, as Brooks took office earlier this week.
In March, Brooks became a chief legal officer at the OCC in Coinbase, which explains the interest in cryptography. Looking ahead, he told Cointelegraph that the role of banks as guardians is understood and where stable coins are appropriate are critical objectives for him:
"What we think of national banks as the proper guardians of cryptocurrencies will be put together by the OCC quickly under my watch. We have no idea about this and I don't want to prejudge it, but my interest in my past life surely lies in the fact that we have to build on it. Then there's the question of what about stablecoins we think about? Do stability or are cash equivalents equivalent to currency? Can it be held in an excellent format by banks or if it is held outside a bank? Is that covered by banking regulations? ”
Crypto and treasury
Crypto was increasingly examined by the regulators both in the US and abroad. Many have interpreted Brooks' hire at the OCC to show more interest in the federal arsenal of onboarding crypto capabilities. Weeks before the recruitment, in March, the Treasury had a meeting with industry leaders to learn more.
