A group of US Democratic lawmakers have criticized the Office of the Comptroller of the Currency (OCC) for over-focusing the crypto industry amid the pandemic and economic crisis.
The Democrats have released a letter addressed to US Foreign Exchange Controller Brian Brooks, who previously served as director of legal affairs for cryptocurrency exchange Coinbase. The OSS is “accused” of making unilateral decisions regarding stablecoins and other digital assets.
In their address, representatives of the Democratic Party refer to the OSS guidelines issued for American banks, according to which they are allowed to hold funds to provide stablecoins. Congressmen are concerned about how these activities will be controlled by federal officials and believe the OSS should cooperate with Congress on these issues.
Lawmakers noted that small financial institutions continue to face a deposit crisis, and the coronavirus pandemic has only exacerbated the problem. On the one hand, some banks will benefit from keeping reserves for cryptoassets. In addition, the introduction of a digital format in banking can expand the access of cryptocurrency firms to banking services.
However, if such activities are not properly regulated, all potential benefits will be lost, and consumers may suffer significant losses. Congressmen believe that OSS should act more responsibly to protect the interests of banks and their clients.
Democrats added that in the midst of a pandemic, the OSS is solving the wrong problems. There are millions of people left who have not yet received the economic aid package, or cannot deposit funds into a bank deposit account. Such problems deserve more attention than banking services to cryptocurrency and blockchain firms.
Lawmakers added that their concerns about the OCC’s over-focus on financial services in the cryptocurrency industry are shared by the American Bankers Association (ABA). She also believes that such services are too far removed from the banking business. Brooks is due to clarify the OSS’s stance on stablecoin regulation and consumer protection by December 10th.
Recall that earlier ABA opposed the release of the digital dollar, as it is confident that it will give too much power to the US Federal Reserve. According to members of the association, private banks are the best candidates for issuing digital currencies.
