OCC Chief: No Reason to Treat Cryptocurrency Differently

Jonathan Gould, the head of the Office of the Comptroller of the Currency (OCC), stated that crypto companies pursuing a federal bank charter in the US should not be treated differently from other financial institutions.

During a blockchain conference on Monday, Gould remarked that while some fresh charter applicants in the digital or fintech sectors may offer unique services for a national trust bank, he remarked, “custody and safekeeping services have been facilitated electronically for decades.”

“There is absolutely no reason to treat digital assets differently,” he emphasized. “Moreover, it is crucial not to restrict banks, including existing national trust banks, to the technologies or practices of the past.”

The OCC oversees national banks and has previously identified crypto companies as a potential risk to the banking system. Currently, only two crypto banks are OCC-licensed: Anchorage Digital, which has retained a charter since 2021, and Erebor, which received a preliminary banking charter in October.

Crypto “should have” a way to supervision

Gould expressed that the banking system possesses the “capacity to transition from the telegraph to the blockchain.”

He mentioned that the OCC had received 14 applications to establish new banks this year, “including some from entities involved in unique or digital asset activities,” nearly matching the number of similar applications over the last four years.

“Chartering ensures that the banking system adapts to the evolution of finance and supports our modern economy,” he added. “That is why entities engaging in activities involving digital assets and other innovative technologies should have a pathway to become federally supervised banks.”

Gould brushes off banks’ concerns

Gould acknowledged that banks and financial trade groups have expressed concerns about crypto companies acquiring banking charters and the OCC’s capacity to supervise them.

Related: Argentina weighs letting traditional banks trade crypto: Report

“Such concerns risk undoing innovations that might better serve bank customers and support local economies,” he remarked. “The OCC has also gained years of experience in supervising a crypto-native national trust bank.”