US Banks More Willing To Provide Crypto Services After OCC Letter

An array of national US banks have come to respond to the “Advance Notice of Proposed Rulemaking” (ANPR) that the OCC had made in June this year. This Notice asked the public at large to weigh their opinions before the 3rd of August, 2020. This was in regard to how fintech tools and cryptocurrencies could be used within the financial sector at large.

ANPR Receives Plentiful Replies

Of particular note, several banking firms such as PNC and US Bank made it clear that they were interested in providing crypto custody services to their customers. This comes alongside other crypto-related services, as well.

Of the total submissions made, 89 in total, just shy of a dozen banks gave their opinions alongside policy advocates, think tanks, crypto startups as well as other entities. This serves as one of the strongest signs yet to indicate how the traditional finance sector is keen to take part within the crypto space, legitimizing it as a true asset class.

Retracing Your Steps

These responses came as a sharp contrast when reviewing the open letter that the Acting Comptroller of the Currency, Brain Brooks, had sent. This letter opposed a narrow payments charter for fintech companies, and was signed by many of those same respondents. This open letter was sent to the OCC on the 29th of July, 2020.

Many Big Names Giving Comment

Juan Saurez stands as the Vice President and General Counsel for Enterprise within Coinbase, and gave comment about the matter at large. He stated that the OCC’s new guidance might help provide the legal comfort banks need to start providing crypto-native analogs to the traditional banking services at large.

However, he highlighted how lending, borrowing, and remittance services could be provided by national banks through conventional means, this doesn’t apply to crypto. Simply put, the banks hold too much uncertainty regarding whether or not they’re entitled to provide these services through the use of cryptocurrencies as well.

Peter Najarian stands as the Chief Revenue Officer at BitGo, and gave comment about the matter, as well. He explained that the existence of the ANPR itself regarding this matter is very exciting indeed. Simply put, Najarian described it as an inevitable step to the ecosystem’s maturity.

Dominic Venturo stands as the Chief Digital Officer at the US Bank National Association. In his response, he explained that the OCC, as well as other banking regulators, must also issue out guidance regarding the crypto market. On top of this, he stated that they needed to stipulate the expectations they have regarding conducted services using distributed ledger technology.