OCC Chief Demands Equal Treatment for Crypto Banks as Traditional Ones

The Role of Federal Regulation in the Crypto Industry

Jonathan Gould, the Senior Deputy Comptroller and Chief Counsel at the Office of the Comptroller of the Currency (OCC), recently stated that cryptocurrency companies seeking federal bank charters should be evaluated under the same standards as traditional banks. During a blockchain conference held on Monday, December 8, Gould emphasized that while some applicants in the digital or fintech sector might offer unique services, the core functions such as custody and safekeeping have been conducted electronically for years.

This argument led Gould to assert that there was no reason to treat digital assets differently from traditional banking services. He also highlighted the importance of not restricting existing national trust banks to outdated business models or technologies. This perspective is crucial as it ensures that the banking system remains adaptable and capable of embracing new innovations.

Concerns from Financial Groups

The OCC is responsible for overseeing the operations of national banks. Initially, the agency viewed crypto firms as a potential risk to the banking system. However, after careful consideration, the OCC realized that many of the concerns were based on speculation rather than concrete evidence. This shift in perspective allowed the agency to change its approach, leading to two crypto banks successfully acquiring OCC licenses so far.

These two crypto banks include Anchorage Digital, which attained its charter in 2021, and Erebor, which received a preliminary banking charter in October. Following this significant shift, Gould commented that the banking system has shown the ability to adapt and progress from the use of telegraphs to the adoption of blockchain technology.

Chartering and Its Importance

Gould noted that the OCC received approximately 14 applications to establish new banks this year. These applications included some from businesses conducting digital asset activities. Interestingly, the figure is nearly the same as that of all similar applications submitted to the OCC over the last four years.

Chartering is essential to the banking system because it ensures that these systems remain updated with the existing financial changes and support the current economic status. “That’s why organizations working with digital assets and other new technologies should have a way to become federally regulated banks,” he added.

Despite this assertion, Gould still noted that banks and financial groups expressed heightened concerns regarding crypto firms acquiring banking charters and whether the OCC would effectively supervise them. He expressed disapproval of such concerns, arguing that they could discourage innovations that would be beneficial to bank clients and assist the local economies.

Argentina's Move in the Crypto Sector

Gould claimed that the OCC often receives updates from existing national banks regarding their projects for new and innovative products and services. “This all boosts my trust in the OCC’s skill to supervise new companies and new activities of current banks fairly and consistently,” he added.

Meanwhile, as banks and financial groups raise concerns about crypto firms acquiring banking charters, recently released reports highlighted that Argentina is considering the possibility of allowing its local banks to engage more actively with cryptocurrencies. This decision marks a significant shift from the country’s previous strict rules on the crypto industry.

A report dated December 5 stated that the Banco Central de la República Argentina (BCRA), the nation’s central bank, is evaluating whether to permit traditional banks to facilitate cryptocurrency trading, according to sources familiar with the discussions.

This development comes despite the BCRA’s earlier restrictions, introduced in 2022, which prohibited banks from offering crypto trading after two major institutions in the country showed increased interest in digital-asset products.

Conclusion

As the regulatory landscape continues to evolve, the role of agencies like the OCC becomes increasingly important. By ensuring that both traditional and digital financial institutions are held to the same standards, the banking system can adapt to new technologies while maintaining stability and security. The ongoing dialogue between regulators, financial institutions, and innovators will shape the future of finance in the digital age.