U.S. Regulator Challenges Banks Resisting Crypto's Quest for Trust Charters
Regulatory Push for Crypto Trust Charters
The traditional banking sector has been slow to embrace the influx of institutions seeking trust charters to cater to digital asset clients. Jonathan Gould, the chief of the Office of the Comptroller of the Currency (OCC), warned that this reluctance could hinder innovation.
Speaking at the Blockchain Association's policy summit in Washington, Gould emphasized, "The OCC regularly hears from national banks about their innovative product initiatives. This boosts my confidence in our ability to supervise both new entrants and activities fairly."
The application process for new bank charters had nearly halted but has seen a revival with 14 new applicants in the past year, many focusing on digital assets and fintech services.
Gould stated, "There is no reason to treat digital assets differently. We must not limit banks to outdated technologies or business models."
The OCC, the sole federal authority for bank charters, has been cautious in granting them to crypto firms. However, the recent provisional charter for crypto bank Erebor marks a shift under Gould's leadership.
Under the Trump administration, the OCC has moved away from its previous crypto resistance. Gould noted that the OCC, along with the Federal Deposit Insurance Corp., is working on rules to remove "reputation risk" from their regulations.
Gould urged the financial sector to "evolve from the telegraph to the blockchain," and mentioned that the OCC is scrutinizing banks' practices of severing ties with crypto businesses.
Further Reading
Read More: Coinbase Faces Flak from Traditional Bankers on Its Push for Trust Bank Charter