WASHINGTON–Sen. Mike Crapo (R-ID), chairman of the Senate Banking Committee, has sent a letter to the Office of the Comptroller of the Currency seeking an update on its next steps relative to digital banking and financial technologies.
In the letter, Crapo notes the Senate Banking Committee has held hearings on cryptocurrencies and digitalization in the payments system, including the impact of distributed ledger technology, blockchain and stablecoins. The letter further notes the OCC has “taken the lead in seeking input on the digital activities of banks and federal savings associations by issuing a June 4 Advanced Notice of Proposed Rulemaking (ANPR) on a variety of areas important to financial technology (fintech) and digital currency issuers.”
Crapo noted the OCC has been seeking feedback on:
- What activities related to cryptocurrencies or cryptoassets financial services companies or bank customers are engaged in and what are the barriers or obstacles to further adoption of crypto-related activities in the banking industry?
- How is distributed ledger technology used or potentially used in activities related to banking?
- What new payments technologies and processes should the OCC be aware of and what are the potential implications of these technologies and processes for the banking industry?
- What new or innovative tools do financial services companies use to comply with regulations and supervisory expectations (i.e., “regtech”)?
‘Clear Rules’ Needed
Crapo requested the OCC provide the committee with an update on its findings and the next steps the agency intends to take with this technology.
“The cryptocurrency ecosystem is as diverse in its products and functions as the rest of financial services. These and similar innovations are inevitable, beneficial and the U.S. should lead in their development,” wrote Crapo. “Your office recently published a letter that clarifies national banks' and federal savings associations' authority to provide cryptocurrency custody services for customers. It would be prudent to provide similar clarity for payments. The U.S. should develop clear rules of the road that protect businesses and consumers without stifling future innovation.”