US Senator Elizabeth Warren is running for office anti crypto. Senate Banking Committee member urged committee members and senators to sign a letter to the Office of the Comptroller of the Currency (OCC). Specifically, the letter will demand the withdrawal of crypto services provided by banks.
Disconnect cryptocurrencies from banking systems
In fact, Warren’s proposal aims to revoke the directives of theOCC that would allow banks to offer cryptocurrency services. The committee believes that these guidelines help Wall Street banks to enter the cryptocurrency market, which increases the risk for the banking system.
In addition, the letter recommends that theOCC works with the Federal Reserve and the FederalDepositSure Corporation for create an alternative approach to crypto. East The latter is intended to adequately protect the safety and soundness of consumers and the banking system.
Find Out: Report Suggests Merger Could Boost Institutional Adoption of Ethereum.
In addition, it shows that previous directives and laws of theOCC they were not enough to protect the banking system from the recent cryptocurrency crisis. He urged banks to amend and remove crypto guidelines to avoid cryptocurrency exposure. Furthermore, it also asks for details of the regulated banks currently offering cryptocurrency-related services and the total amount of such services.
“We are concerned that theOCC it did not adequately address the shortcomings of previous interpretive letters and the risks associated with cryptocurrency banking, which have worsened in recent months.”
OCC favorable to the application by Elizabeth burrow
The Senate Banking Committee will send the final version of the letter to the Acting Comptroller of theOCCMiguel Hsu. In a request for comment, a representative of theOCC aforementioned Michael’s Recent Comments Hsu. He noted concerns about banks’ increasing forays into the crypto space. Show that Miguel Hsu I would like to change the guidelines. cryptocurrency for banks
In fact, Hsu asked for greater caution in the face of the contagion of the crypto to the traditional financial system. The recent turmoil in the crypto it caused investors to lose billions of money. This situation leads legislators and regulators to strengthen the supervision of services related to crypto.
Bonus: The ECB believes that CBDC is still the better option than cryptocurrencies for cross-border payments.
