A high US regulator’s latest easing of its stance on crypto doesn’t imply that the US authorities’s campaign in opposition to the trade is over, in response to Custodia Financial institution CEO Caitlin Lengthy.
Late final week, the Workplace of the Comptroller of the Foreign money (OCC) announced that banks within the US may now go forward with a spread of crypto providers, together with custody and sure stablecoin actions.
Mentioned Performing Comptroller of the Foreign money Rodney E. Hood,
“As we speak’s motion will cut back the burden on banks to interact in crypto-related actions and be sure that these financial institution actions are handled persistently by the OCC, whatever the underlying know-how. I’ll proceed to work diligently to make sure rules are efficient and never extreme, whereas sustaining a robust federal banking system.”
Nonetheless, Lengthy says that Operation Choke Level 2.0 – a time period generally used to explain the US authorities’s covert agenda to stifle the crypto trade – isn’t over until two different US regulators abandon their unfriendly stance on digital belongings.
Final December, a Freedom of Data Act (FOIA) request by the crypto alternate Coinbase found dozens of cases the place the Federal Deposit Insurance coverage Company (FDIC) requested banks to freeze crypto-related providers.
Lengthy additionally calls upon the Fed to permit Custodia – a distinguished digital asset custody financial institution – to have a grasp account, or a checking account that monetary establishments maintain immediately with the Federal Reserve.
Says Lengthy,
“AMID ALL THE JUBILATION ABOUT the OCC information, Operation Choke Level 2.0 (OCP 2.0) isn’t over till:
1. Fed and FDIC additionally rescind their anti-crypto steerage, which continues to be in impact (Fed & FDIC have been way more detrimental to crypto banking than OCC) and
2. Custodia Financial institution has its Fed grasp account.
Context: banks that needed to serve crypto however acquired regulatory stress to not (OCP 2.0) have been principally Fed and FDIC-regulated banks, not OCC-regulated. OCC’s transfer is an enormous constructive an has implications on the opposite two businesses, however FDIC and Fed anti-crypto steerage continues to be in impact.“
The Home Committee on Oversight and Authorities Reform lately requested entry to unredacted paperwork from the FDIC to analyze allegations that banks have been intentionally de-banking the crypto trade.
The FDIC has not formally answered the request.
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