Home Technology Trade Groups Support OCC: Some Crypto Stocks Under Traditional Banking

Trade Groups Support OCC: Some Crypto Stocks Under Traditional Banking

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Trade Groups Support OCC: Some Crypto Stocks Under Traditional Banking

Removing the OCC’s interpretation letters regarding cryptocurrency would not benefit consumers and investors or promote a safe and secure marketplace, the American Bankers Association and the Bank Policy Institute said today in a statement. letter to Acting Comptroller Michael Hsu. The associations respond to a recent request by four U.S. senators for Hsu to withdraw the interpretative letters, saying the “OCC actions on crypto may have exposed the banking system to unnecessary risk” given “the current turmoil” in the crypto market.

In 2020 and 2021, the OCC issued several interpretative letters clarifying that many crypto activities are just modernized versions of traditional authorized banking activities. ABA and BPI urged Hsu to reject lawmakers’ request to withdraw the interpretative letters, reaffirming that certain crypto activities fall within the scope of traditional banking activities permitted for national banks. The trade groups said the OCC’s technology-neutral approach to permitted banking activities enables banks to meet customer demand for modernized services within the robust supervisory and regulatory framework in which banks operate. .

The appropriate way to address the risks highlighted in the Congressional letter is to “appropriately regulate non-bank crypto companies and currently largely unregulated products,” the associations said. “Banks are subject to comprehensive and robust risk management, oversight and review processes, and have considerable experience integrating new technologies into banking operations,” they wrote. “The public and the wider financial system benefit from the banks’ involvement in the activities described in the interpretative letters.”

ABA and BPI said a consistent approach by federal banking regulators to permissible crypto activities for banks and related risk management expectations would benefit institutions and their customers. They recommended that the agencies continue to work to clarify the authorization of crypto activities and expectations for risk management.

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