As the cryptocurrency market marches ahead for the next bull run, the buzz for crypto banks is on the rise. In his recent interview with Forbes, Brian Books, the acting chief of the Office of the Comptroller of the Currency (OCC) hinted at more crypto banks coming to the market.
Brooks is well-known for being open to crypto innovation in the payments sector. While hinting at some crypto-friendly reforms, Brooks said that a ‘National Trust Charter’ for cryptocurrency banks is on the way ahead.
During the interview, Brooks spoke about how he sees his role at the OCC, especially with the changing banking scenario. He also shared his wisdom about how the agency is likely to respond during these tough times of COVID-19. Brooks also touched upon the most important topic in the financial space today i.e. crypto. Quoting the rules of “free market democracy” Brooks noted that he doesn’t want to be just someone resiting the change.
He noted that as of date, nearly 40 to 60 million Americans own cryptocurrencies. He further noted:
“Millions of people want this and use it and value it. It’s not my job to tell them they are wrong, it’s my job to tell them to figure out what their risks are and are they managed appropriately and is it a system that people trust. Simple as that”.
In a message to regulators and financial authorities who go hard on protectionism, Brooks has a message. The OCC chief notes that although human brains are wired to resist change, he finds it increasingly funny when the most progressive people turn “inherently conservative”.
Demystifying Crypto
Brooks noted that one of his roles as the OCC chief is to “demystify crypto”. He added that he will help people understand how cryptocurrencies serve their needs and in a better way. When millions of Americans are already using crypto, the authorities can’t just turn a blind eye to it, he noted.
Brooks points out that even big financial institutions are warming up to crypto. The partnership between JPMorgan and Fidelity Digital Assets to offer crypto custodial services is a testament to it.
“That’s a good sign. The bank is finding a niche in the future economy but it’s also a good sign for crypto investors that have a safer place to store their crypto than they did before, that’s terrific,” he added.
Although there have been hanging questions around the arrival of crypto securities and the approval of stablecoins, the OCC will weigh the risks in a cautious way. Lastly, he also added that crypto-powered blockchains can also provide synthetic fraud solutions. Overall, Brooks seemed absolutely positive about the future of FinTech.