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New OCC Chief Signals Caution on Crypto

Updated: Jul 25, 2024
Published: May 19, 2021
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The United States Office of the Comptroller of the Currency (OCC) will review its crypto-related guidance issued over the past year, its new chief said.

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Requesting a review of all pending matters

Michael Hsu, the new acting comptroller, said that he had requested a review of all pending matters. In addition, the office will review interpretative letters and guidance from the Federal Banking Regulators. THis includes issues related to digital assets and cryptocurrencies.

Much of the OCC's crypto guidance was issued under the administration of the former Acting Comptroller Brian Brooks. At the time, they marked something of a turning point for the acceptance of the crypto industry by the broader banking sector.

Open-minded and committed

Hsu explained that the OCC's focus has been on encouraging responsible innovation. He also noted that they have created an Office of Innovation. This new body recently updated the chartering framework for national banks and trust companies. Additionally, it has interpreted crypto custody services as part of the banking business. He was asked to review these actions and found that these initiatives were not done in full coordination with all stakeholders. Clearly, Hsu has concerns, however he also remains open-minded and committed.

The OCC Acting Comptroller will testify before the House Financial Services Committee on Wednesday in a hearing that will include all the U.S. Federal bank regulators.

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