Jonathan Gould, the Senior Deputy Comptroller and Chief Counsel at the Office of the Comptroller of the Currency (OCC), said this week that cryptocurrency companies seeking federal bank charters should be evaluated under the same standards as traditional banks.
During a blockchain conference held on Monday, December 8, Gould noted that while some of these applicants, either in the digital or fintech sector, might appear to provide unique services for a national trust bank, he emphasized that custody and safekeeping services have been conducted electronically for several years.
Therefore, with this argument in place, Gould asserted that there was no reason why individuals should consider digital assets differently from banks. He also pointed out the reason as to why it is crucial to avoid restricting banks, including existing national trust banks, to old business models or technologies.
Financial groups raise concerns about crypto firms acquiring banking charters
The OCC is responsible for overseeing the operations of national banks. While undertaking this role, the federal agency previously considered crypto firms as a potential risk to the banking system.
However, after careful consideration, the OCC began to realize that the claims against crypto companies were merely speculations. This led them to change their perspective on the sector. Consequently, two crypto banks have successfully acquired OCC licenses so far, as the federal agency has vowed to grant more crypto banks access to this license in the future.
These two crypto banks include Anchorage Digital, which attained its charter in 2021, and Erebor, which received a preliminary banking charter in October. Following this significant shift in outlook, Gould commented that the banking system possesses the ability to adapt and progress from the use of telegraphs to the adoption of blockchain technology.
To further support this argument, he noted that the OCC received approximately 14 applications to establish new banks this year. These applications included some from businesses conducting digital asset activities. Interestingly, the figure is nearly the same as that of all similar applications submitted to the OCC over the last four years.
According to Gould, chartering is essential to the banking system because it ensures that these systems remain updated with the existing financial changes and support the current economic status. “That’s why organizations working with digital assets and other new technologies should have a way to become federally regulated banks,” he added.
Nonetheless, even with this assertion, Gould still noted that banks and financial groups expressed heightened concerns regarding crypto firms acquiring banking charters and whether the OCC would effectively supervise them.
He expressed disapproval of such concerns, arguing that they could discourage innovations that would be beneficial to bank clients and assist the local economies. Gould mentioned that the OCC has years of experience running a national trust bank concentrating on cryptocurrencies.
Argentina seeks to solidify its position as a leader in the crypto industry
Gould claimed that the OCC often receives updates from existing national banks regarding their projects for new and innovative products and services. “This all boosts my trust in the OCC’s skill to supervise new companies and new activities of current banks fairly and consistently,” he added.
Meanwhile, as banks and financial groups raise concerns about crypto firms acquiring banking charters, recently released reports highlighted that Argentina is considering the possibility of allowing its local banks to engage more actively with cryptocurrencies. This decision marks a significant shift from the country’s previous strict rules on the crypto industry.
A report dated December 5 stated that the Banco Central de la República Argentina (BCRA), the nation’s central bank, is evaluating whether to permit traditional banks to facilitate cryptocurrency trading, according to sources familiar with the discussions.
This development comes despite the BCRA’s earlier restrictions, introduced in 2022, which prohibited banks from offering crypto trading after two major institutions in the country showed increased interest in digital-asset products.
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Source: https://www.cryptopolitan.com/treat-crypto-banks-like-regular-banks/
