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America’s top banking regulator is concerned that the Biden administration may cancel some cryptocurrency regulations designed to protect consumers.This includes allowing National Bank to custody deployed crypto assets During the Trump administration.
Last week, Brian Brooks, the chief accountant of proxy currencies, shared some concerns about cryptocurrency regulations in an interview with CNBC.
Brooks is the administrator of the Commonwealth Banking system and the chief executive officer of the Office of the Comptroller of Currency (OCC). The OCC supervises nearly 1,200 national banks, the Federal Savings Association and the federal branches of foreign banks.
From a regulatory perspective, he was asked to comment on the recent Bitcoin bull market. Brooks replied:
I will tell you that what I am worried about is that all these things are happening in an environment where we are about to replace the presidential administration, and I call on Capitol Hill to cancel some of the regulatory protection measures we have formulated for this purpose.
OCC gave the green light to banks under its supervision to provide cryptocurrency custody services in July. Brooks explained that his agency “is working to make people’s supervision of the National Bank more secure.” He added: “We talked about banks supporting some of these stablecoin projects. Without these protections, I would really worry about these. The environment of things. This is what I am most concerned about. How do we maintain safety for the people participating in this market.”
He pointed out: “What I want to tell you now is that we are now at a very critical turning point. It’s a bit like a fork in the road.” He set out to outline the two paths of encryption regulation. “The way forward is for us to find a solution to the risk of money laundering and find a solution to terrorism financing. I think it can be done. But we are safe for the consumers and investors involved, which is why the bank The reason the system can play such an important role,” he asserted and added:
Another way that has real potential here is for us to politicize some of these technical issues, whether it is broader encryption or financial technology. We politicized it by withdrawing all the excellent work done by this government to make it safer and more real.
Brooks then referred to a letter from Congresswoman Maxine Waters (Maxine Waters), which urged the Biden administration to revoke some of the OCC regulations. One of the proposals is to cancel the proposal to allow the National Bank and the Federal Reserve Association to provide cryptocurrency custody services. Regarding the recommendations made by Waters in the letter, Brooks said: “If we do these things, then I am not sure if we have enough foundations to move on. We must work hard to implement everything related to the consolidation of regulatory benefits and consumer protection. . That must stick to it.”
He further elaborated: “The role of the government is to ensure that the market is well regulated and organized so that those who trade know that they are trading with good people rather than bad people.” He emphasized, “Part of it means that, just like in any financial As in the market, it must be tracked and cannot be anonymous.”
The acting controller of the currency clarified that people who hold cryptocurrencies need to know that they will not lose them. “This is why it is important for people that they must be able to keep assets in the bank, just as you can keep stock certificates or any other assets you own,” Brooks said.
Brooks pointed out: “At the moment, this is a real political debate,” he emphasized:
People may not realize this, but congressional leadership is urging the incoming Biden administration to revoke certain protective measures. I think that in the name of politics is not in the name of protecting investors.
Recently, the Financial Crime Enforcement Network (FinCEN) proposed new regulations regarding cryptocurrency wallets. Public comments can be submitted before January 4. At the same time, the US Securities and Exchange Commission (SEC) took action against many cryptocurrency companies, including the sale of Ripple Labs, to sell unregistered securities.
Do you think the Biden administration will withdraw some encryption regulations? Let us know in the comments section below.
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