Brian Brooks, who used to be a lawyer at Coinbase but currently the acting Comptroller of the Currency, sees the need for banks and cryptocurrency to work together.
The Office of the Comptroller of the Currency made the announcement yesterday, June 4, asking for the possibility of their collaboration.
Crypto and banks meet
An Advanced Notice of Proposed Rulemaking has been sent to banks and industry heads to reply to the following questions:
“What activities related to cryptocurrencies or cryptoassets are financial services companies or bank customers engaged in and what are the barriers or obstacles to further adoption of crypto-related activities in the banking industry?”
Brian Brooks says he is working towards bringing out the best the collaboration can offer to the economy. He thinks there are:
“Ways the cryptocurrency regime needs banking services, ways that they need to transact across the bank rails, etc. So we have affirmatively come out and said, give us information about what crypto needs from banking and banking needs from crypto, because we want to really do something in that space.”
Crypto examines Brook’s one week in office
Banks are mainly regulated by the OCC in the United States Treasury. This announcement is one of the major functions Brooks has taken since he assumed the new role.
Brooks was in Coinbase up till March before he joined the OCC. His history at Coinbase may be able to explain why he likes crypto. He said it would be a thing of joy if he succeeds in making banks and crypto industries work together. His goals in office can be seen in his statements:
“The OCC, quickly under my watch, will get a position together as to what do we think about national banks as appropriate custodians for cryptocurrency. We don’t have a view on that and I don’t want to prejudge that but it is certainly an interest of mine from my past life that we need to come to ground on that. And then there’s the question of what do we think about stablecoins? Are stable coins equivalent to currency or are the cash equivalents? Can they be held by banks in an awesome format or if they’re held outside of a bank? Is that covered by banking regulations?”
Apart from Brooks, there are other regulators outside the US who have been trying to incorporate crypto into the financial system. Some people think that the appointment of Brooks into the office of the OCC is an indication that the US may also be interested in crypto. Before Brooks was linked to the OCC in March, it was reported that the US Treasury had a discussion with crypto leaders.