Top U.S. Banking Regulator ensured that positive cryptocurrency regulation is coming soon, by the end of the Trump term. “It’s going to work for everybody,” said the regulator, noting that the new regulation will “make it easier for crypto investors to know how to invest,” thus enticing more institutional investors.
New Crypto Regulation Works for Everybody
Brian Brooks answered some questions about the forthcoming U.S. cryptocurrency regulation in an interview last Friday.
Regarding the new U.S. cryptocurrency regulation, he said: “We’re very focused on getting this right. We are very focused on not killing this, and it is equally important that we develop the networks behind bitcoin and other cryptos as it is we prevent money laundering and terrorism financing.” He elaborated:
Brooks’ answer was in response to a rumor that the Treasury Department may be rushing out crypto regulation before the end of the Trump term.
Brian Armstrong voiced his concerns on Twitter last November 25. He wrote: “We heard rumors that the U.S. Treasury and Secretary Mnuchin were planning to rush out some new regulation regarding self-hosted crypto wallets before the end of his term. I’m concerned that this would have unintended side effects.”
“What we do need is clarity about what is allowed, and so we need some guidance for example whether banks can connect directly to blockchains as payment networks, the answer has to be yes,” explained Brooks. He formerly served as the chief legal officer at Coinbase. He highlighted that many features of the new regulation would deliver clarity around the nature of crypto assets.
Though noting that “it’s a dangerous world out there,” the top banking regulator stressed:
When asked if he believes more regulation will benefit the crypto industry, the OCC chief said: “I don’t think we need 50 regulations instead of two, but what we do need is clarity about what’s allowed.”
He added: “We need some guidance, for example, about whether banks can connect directly to blockchains as payment networks. The answer has to be yes … We need the answers about can banks custody cryptocurrencies so that institutions feel comfortable adopting. And you saw what happened when we gave that clarity.”
When will it happen?
Brooks was asked if people should expect new U.S. crypto regulation at the end of the Trump term. “I think you’re going to see a lot of good news for crypto by the end of the Trump term,” he replied, adding:
“Those are the things that are driving prices at this point,” he reckoned. “You know it may have been a bubble two years ago, but with more clarity, institutions that see this as a real thing are going to adopt at scale, which they’ve already started to do. So stay tuned.”