In a recent address in Washington, D.C., Jonathan Gould, the head of the Office of the Comptroller of the Currency (OCC), expressed a strong commitment to dismantling the “two-tiered system” he says unfairly stigmatizes legal activities between traditional banks and the crypto industry.
Gould articulated his belief that many of the activities associated with cryptocurrencies and the underlying technologies are essential to modern financial intermediation services.
OCC Ready To Collaborate With Banks On Crypto
Gould emphasized that the Treasury Department’s independent bureau is prepared to work closely with banks interested in engaging with crypto assets. “We’re going to take a step back to see if we’re going to work much more closely with those who are interested in doing these activities,” he stated.
His focus is on ensuring that banks can participate in these legally permissible activities in a manner that prioritizes safety and soundness. As regulators, he insists it is their obligation to facilitate such engagement without imposing unnecessary barriers.
This shift coincides with a more accommodating stance by US regulators toward digital assets, influenced by President Donald Trump’s campaign promise to establish the US as the “crypto capital of the planet.”
Since taking office earlier this year, President Trump’s administration has taken steps to support the industry, including issuing executive orders, regulating stablecoins, and calling for the creation of a national digital asset stockpile.
As such, the US Securities and Exchange Commission (SEC) has decided to drop its enforcement cases against the industry’s largest firms and individuals. Coupled with these decisions are statements from the agency’s leadership that have spurred renewed confidence and further investments in the sector throughout the year.
Gould Targets Debanking Practices
Bloomberg reports that the OCC has also sought to combat the practice of debanking, which involves denying banking services to certain individuals or businesses, often impacting “politically sensitive clients” like cryptocurrency firms.
While critics argue that bank examiners have pressured digital asset lenders to sever ties with such clients, consumer advocates point out that evidence of widespread debanking is lacking.
The Office of the Comptroller of the Currency’s head acknowledged that when banks consider entering new activities, they must develop the necessary infrastructure to support these initiatives.
He reiterated that while the OCC’s regulatory framework needs to address the unique risks posed by new technologies like crypto, innovation should not inherently conflict with safety and soundness.
“I don’t see innovation as inconsistent with safety and soundness on its face,” he asserted, highlighting a forward-looking approach that balances risk management with the need for financial innovation.
Ultimately, the regulatory environment in the US and the stance of these regulators, including the Commodity Futures Trading Commission (CFTC), highlight a departure from previous years, prompting traditional finance firms to increase their exposure to the digital asset sector.
Featured image from DALL-E, chart from TradingView.com
