The US Congressman is concerned about the impact that the cryptocurrency industry could have on the country’s banking system.
Elizabeth Warren has launched a new anti-cryptocurrency initiative by proposing a bill that would ban banks from providing services related to digital assets. Congressman proposes to reduce Wall Street’s involvement in crypto activities. To do this, Warren is urging senators to sign a letter to the Office of the Comptroller of the Currency (OCC) asking them to ban banks from offering services such as storing cryptocurrencies.
According to the authors of the initiative, the unlimited access of Wall Street banks to the cryptocurrency market exposes the entire banking system of the country to great risk, since crypto-assets are unstable and almost unregulated.
Warren, in the letter, calls on the OCC to work with the Federal Reserve System (FRS) and the Federal Deposit Insurance Corporation (FDIC) to develop an alternative approach to cryptocurrencies that will adequately protect consumers and contribute to the safety and soundness of the banking system:
“We are concerned that the OCC has failed to adequately address the shortcomings of previous explanatory letters and the risks associated with banks dealing in cryptocurrencies. Moreover, the risks have recently become more serious.”
According to Warren, current OCC regulations and rules are not enough to protect the financial system from the instability of the cryptocurrency market. The senator is demanding changes and elimination of cryptocurrency banking guidelines to prevent banks from participating in the crypto industry. The document also asks for information on the current number of regulated banks that provide crypto-currency services, as well as the total dollar value of the services provided.
Earlier, the US congressman decided to make sure that the methods of app verification are reliable before being allowed into the mobile app stores on Android and iOS.