WASHINGTON–Senate Banking Committee Chairman Sherrod Brown (D-OH), who has been skeptical of cryptocurrencies, has sent a letter to acting Comptroller of the Currency Michael Hsu expressing concerns about crypto companies getting approved for national trust charters.
In the letter, Brown noted a number of recent approvals came under the former acting comptroller, Brian Brooks, who once worked for Coinbase and recently became the CEO of Binance’s U.S. division.
“Given the many uncertainties present in the digital asset landscape as identified by other regulators, the volatility of digital asset valuations, and the disproportionate influence individuals can have on entire cryptocurrency markets, the OCC is not in a position to regulate these entities comparably to traditional banks,” Brown wrote.
Noting others have also raised concerns, Brown stated, “A unifying concern among those stakeholders is that, in many cases, the companies that seek access to the benefits of a bank charter do not meet the same set of regulatory and consumer protection standards that banks are required to meet. The recent OCC approvals of national trust charters for these cryptocurrency firms raise similar concerns. A firm that cannot meet the rigorous requirements applicable to other banks should not be allowed to present itself to the public as a bank.
Implied Stamp of Approval
Brown told the OCC that statements made by the cryptocurrency firms imply the OCC’s approval of their charters “guarantees their business model is as safe, stable and dependable for customers as a local community bank. The fact is, given the many uncertainties present in the digital asset landscape as identified by other regulators, the volatility of digital asset valuations, and the disproportionate influence individuals can have on entire cryptocurrency markets, the OCC is not in a position to regulate these entities comparably to traditional banks.
“It is also unclear whether the OCC engaged in the appropriate due diligence to stand behind this ‘seal of approval’ before granting these charters,” Brown added.