TLDR
- Comptroller Jonathan Gould pushes back against traditional banks’ objections to crypto firms seeking trust charters.
- Gould highlights OCC’s role in supporting innovation and overseeing both new and existing banks fairly.
- In the past year, 14 companies, including crypto firms, applied for bank charters
- The OCC recently granted Erebor a provisional charter, signaling a shift in crypto bank licensing.
- The OCC is addressing banking practices, including rules to eliminate “reputation risk” in crypto banking.
Comptroller of the Currency Jonathan Gould has responded to traditional banks opposing crypto firms seeking trust charters. Gould addressed the issue during a recent event in Washington, asserting that the Office of the Comptroller of the Currency (OCC) will not yield to the complaints of banks.
Gould Pushes Back Against Bank Complaints
At the Blockchain Association’s policy summit, Jonathan Gould emphasized the OCC’s commitment to supporting innovation in banking. He stated that the regulator has received frequent feedback from national banks about their desire for new and innovative products. Gould added that this confidence reinforced the OCC’s ability to supervise both new entrants and existing banks fairly.
He noted that in the past year, 14 companies applied for new charters, with many linked to digital assets and financial technology. While banks have expressed concerns over crypto firms entering the banking sector, Gould underscored that “there is simply no justification for considering digital assets differently.” His comments aim to reassure the industry that the OCC will continue to support emerging technologies.
Slow Process of Charter Approval
The OCC’s chartering process for new banks had slowed significantly but has now gained momentum. Gould highlighted that there were 14 applicants for bank charters in the past year, many coming from the crypto industry. The OCC’s cautious approach towards granting licenses has led to delays, with Anchorage Digital being the only crypto bank licensed for several years.
However, Gould’s recent decision to grant Erebor a provisional charter marks a shift. Erebor became the first crypto bank to receive such a charter under Gould’s leadership. This move signals a possible change in the OCC’s stance toward crypto firms seeking banking status.
Efforts to Address Banking Practices
In his speech, Gould also mentioned that the OCC, alongside the Federal Deposit Insurance Corporation (FDIC), is working on new rules. These rules aim to remove “reputation risk” concerns from regulations affecting banks working with crypto firms. Gould stressed the importance of updating banking practices to keep pace with technological advancements, stating, “We must evolve from the telegraph to the blockchain.”
The OCC is also closely monitoring banks’ practices of cutting off services to crypto businesses and their executives. Gould noted that these actions are under review to ensure banks operate fairly and transparently. The regulatory environment surrounding crypto banking is evolving as regulators adapt to new technologies. The OCC’s stance on trust charters for crypto firms could shape the future of the industry.
