US Senator Elizabeth Warren is reportedly asking the Office of the Comptroller of the Currency (OCC) to pull back the crypto guidelines it set in place for banking institutions.
According to a new report by Bloomberg, Warren is circulating letter in the Senate that would ask the OCC to roll back its guidance involving a number of interpretations, including the definition of stablecoins, that eventually enabled banks to offer crypto custody services to clients.
Warren is asking the OCC to work with other regulatory agencies to create an approach “that adequately protects consumers and the safety and soundness of the banking system.”
Warren’s letter finds that the current OCC standards don’t adequately take into account the flaws and financial risks of banking institutions venturing into the world of crypto.
Says Warren’s letter, as cited by Bloomberg,
“Cryptocurrencies are highly volatile assets that offer few, if any, protections to retail investors… We are concerned that the OCC has failed to properly address the shortcomings of the preceding interpretive letters and the risks associated with crypto-related banking activities, which have grown more severe in recent months.”
Though the letter has yet to be seen by Acting OCC Head Michael Hsu, he says he looks forward to responding to Warren.
Hsu says he believes the OCC has done well thus far as the banking system is still in “good shape” despite recent turmoil in the crypto markets.
Says Hsu, according to the report,
“I am a very strong believer that anything that comes into the banking system in crypto has to be safe, sound, and fair, and we’re going to do what’s necessary in a way that’s sustainable, durable, [and] robust. I think we’re doing a pretty good job. See exhibit A: a whole bunch of stuff happened, and the banking system is in pretty good shape, knock on wood. I think part of that is the actions we’ve taken.”
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