According to acting the Acting Comptroller of the Currency Brian Brooks, the senior deputy of OCC, public banks, and government reserve funds associations presently take part in stablecoin related operations which involve billions of dollars every day. This view gives better administrative certainty to banks inside the federal banking network to provide a secure way for customer-service.
The OCC elaborated on how banks are supposed to deal with stablecoin reserves, especially those that are backed by fiat such as the dollar or euro. The letter from Comptroller does indicate that until further notice, this will apply only to those stablecoins backed 1:1 with other currencies, implying that tokens that rely on baskets of digital currencies like Libra are left out. The OCC has found a way to coordinate the crypto space with the current financial structure under Brian Brooks, who is the former counsel for Coinbase. As of late, the OCC has advised banks that they can offer services to new crypto companies and other fintech firms. As per the letter, stablecoin providers can indicate banks that hold their reserves, for their customers or the public to be sure of its safety.
Paul Clark, Seward & Kissel LLP, comments on the developments as the following:
“No new law was created by this release; however, the OCC seems to be using the guidance process to assure national banks that they can use their established powers in the crypto context just like they have in other areas. They want to be out front on the crypto issues so national banks do not appear to be behind state chartered banks, particularly in light of the aggressive moves by Wyoming; and the OCC may also highlight the advantages a national bank charter can provide as opposed to more limited state charters such as Wyoming’s SPDI charter.”In March, as Brian Brooks, who was the legal counsel for Coinbase became the interim director of OCC, they have been very active in expanding cryptocurrency roles in the banking system. The OCC also sent out the same resolution approving federal banks keeping crypto assets in July.
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