US senator asks top financial regulator to roll back crypto guidelines put in place for banks: Report

US senator asks top financial regulator to roll back crypto guidelines put in place for banks: Report
US senator asks top financial regulator to roll back crypto guidelines put in place for banks: Report

US Senator Elizabeth Warren is reportedly asking the Office of the Comptroller of the Currency (OCC) to withdraw the crypto guidelines it has put in place for banking institutions.

According to a new report from Bloomberg, Warren is circulating a letter in the Senate that will ask the OCC to roll back the guidance involving a number of interpretations, including the definition of stablecoins, which ultimately allowed banks to offer crypto custody services to customers.

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 current OCC standards do not adequately address the flaws and financial risks of banking institutions venturing into the crypto world.

Says Warren’s letter, cited by Bloomberg,

“Cryptocurrencies are highly volatile assets that offer little, if any, protection to retail investors … We are concerned that the OCC has failed to address the deficiencies of the previous interpretive letters and the risks associated with crypto-related banking activities, which have grown more serious in recent the months.”

Although the letter has not yet been seen by acting OCC chief Michael Hsu, he says he looks forward to responding to Warren.

Hsu says he believes the OCC has done well so far as the banking system remains in “good shape” despite recent turmoil in crypto markets.

Says Hsu, according to the report,

“I’m very convinced that everything that enters the banking system in crypto must 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 are doing a good job. See Exhibit A: a whole bunch of things have 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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