US senators have warned the Bureau of Currency Control (OCC) about cryptocurrencies.
Senators also raised questions from the OCC about how many banks in the country are involved in the cryptocurrency industry.
US Senators Warn OCC
US Senators Elizabeth Warren, Bernie Sanders, Richard Durbin, and Sheldon Whitehouse have asked the OCC to revoke crypto-interpretive documents. These documents include how banks get involved in and allow crypto activities.
In their letter to the regulator, the senators expressed concern over the publication of documents that allow the regulator to provide crypto custody services to banks.
“Given the risks that cryptocurrencies present to banks and their customers, we recommend that you withdraw OCC Interpretive Documents 1170, 1172, 1174, and 1179, and coordinate with the Federal Reserve and the Federal Deposit Insurance Corporation to develop a comprehensive approach that adequately protects consumers and ensures the security of the banking system. We ask you to work as
The OCC released these documents from July 2020 to January 2021, when Brooks managed the regulator. These documents, published at the time, accelerated the entry into the crypto industry.
Senators noted that the recent crypto crash is unlikely to impact the traditional banking industry, but more stringent measures are needed to mitigate risks to the financial system and investors.
The senators also called to find out how many banks have been approved to participate in crypto activity and what kind of services these banks provide.
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