Stakeholders in the Crypto Ecosystem Want US Regulator to Increase Bank's Crypto Capabilities
Godfrey Benjamin Aug 04, 2020 01:00
Stakeholders including the Silvergate Bank have responded to the OCC call recommending the regulator to improve US bank’s crypto capabilities.
Following the call for comments made by the Office of the Comptroller of the Currency (OCC) on potential rules regarding cryptocurrencies, stakeholders in the cryptosphere have written to the regulator to increase US bank’s crypto capabilities. As it stands, several government agencies in the United States are going bullish for blockchain and cryptocurrency-related advances.
From the new regulatory framework released by the Commodity Futures Trading Commission (CFTC) to the possibility of paying for legal services with digital currencies, the US is sure gearing for massive new digital integration across all sectors.
The OCC Proposed Regulatory Reform
As the body tasked with the regulation of Federal Banks and financial institutions, the OCC seeks to drive innovations via updated regulations. Recent among these moves is the approval the body granted US banks to keep custody of digital assets.
“National banks and federal savings associations (banks) must have a regulatory and supervisory framework that enables banks to adapt to rapidly changing trends and technology developments in the financial marketplace to meet customers' evolving needs while continuing to operate in a safe and sound manner.” The OCC said in a statement
The OCC has exercised its role by creating regulations governing data handling, the promotion, and adoption of emerging technologies in the financial service ecosystem amongst other roles.
Owing to the disruptive push by digital currencies, the OCC now believes there is a need for a review for which it is calling stakeholders to make probable inputs.
Notable Comments from Stakeholders
As a veteran investor in the crypto-lending ecosystem, Silvergate Bank told the OCC to encourage the adoption of blockchain channels in sending money among institutions and customers alike. The firm noted:
“Blockchain technology delivers a recognized use case as a transfer of value network, and while many continue to explore how to expand upon that use case, as demonstrated by various USD backed stablecoin projects, they are doing so within existing regulatory frameworks that do not provide adequate guidance for regulated entities, like financial institutions.”
The OCC call has seen about 23 constructive comments trickle in thus far. It is obvious that the growing call for regulatory adherence relating to blockchain and cryptocurrency will go global in due time and in favor of the imminent global digital economy
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