STOCKS TELEGRAPH

Tag: OCC

  • US regulators to join hands an interagency crypto regulation team

    US regulators to join hands an interagency crypto regulation team

    The regulation of cryptocurrencies had been a sour topic for regulators all over the world. The blockchain technology is relatively newer and not many people are well-versed in it, which makes navigating it all the more difficult. Moreover, the crypto sphere is also highly dynamic. Every day newer uses and newer innovations emerge in the market which places regulators at even a more difficult place.

    The brutal market crash may have put a lot of things into perspective as regulators in the United States have decided to join hands for a cryptocurrency regulatory body. The new head of the Office of the Comptroller of the Currency, Michael Hsu, revealed that the agency had been in talks with the United States Federal Reserve regarding a regulatory body focused solely on cryptocurrency. The regulatory body is described as an “interagency policy sprint team”.

    During a virtual meeting, Hsu discussed the proposition with the Fed vice chairman of supervision Randal Quarles as well as FDIC chairman, Jelena McWilliams. Randal Quarles also disclosed that the Fed had been actively working with other government agencies for the purpose of cryptocurrency regulation.

    Asian countries have had mixed stances when it comes cryptocurrencies. Turkey is one of the countries on the forefront of war against cryptocurrency-caused problems. The country has announced a new policy which forces crypto exchanges to inform the Financial Crimes Investigation Board (MASAK) of any cryptocurrency transaction exceeding $1,200. On the other hand, South Korea had launched a crackdown of its own on cryptocurrencies. Major regulatory bodies of the country had joined hands against problems like tax evasion and money laundering that are fueled by cryptocurrencies.

  • OCC Fintech Charter Under Fire From House’s Democrats

    OCC Fintech Charter Under Fire From House’s Democrats

    Brian Brooks, the Acting Comptroller for the Currency from May 2020 to January 2021, had to defend the fintech banking charter in front of the House Financial Services Committee’s Subcommittee on Consumer Protection and Financial Institutions.

    The fintech charter was introduced by the Office of the Comptroller of Currency (OCC) which enabled fintech firms – including cryptocurrency firms – to provide lending and payment products without the scrutiny faced by other firms. The charter placed fintech firms out of the inspecting lens of the banking regulators – allowing crypto firms greater freedom.

    Brooks faced lash back from the Democrats as they argued the viability of the charter given the already largely unregulated status of the cryptocurrency industry. Chairwoman of House Financial Services Committee, Maxine Waters, talked about the complaints registered from banks about the greater freedom that firms under the charter have. Waters furthered bashed the OCC stating the office has stepped outside its authority.

    Brooks was quick to defend the charter stating that the charter bought fintech companies under regulation. Moreover, Brooks also described how the charter is aimed at empowering the financial technology sphere in order to provide greater value to consumers. According to Brooks, the charter enables a greater choice to consumers of lending and payment options; hence empowering consumers. Brooks further stated the charter is designed to help propel the country’s technological dynamism.