The move to have licensing regulations for cryptocurrencies could boost their adoption into the United States’ mainstream financial system. Brian Brooks, the current U.S. Comptroller of the Currency and former chief legal officer at Coinbase, is pushing to have federal licensing for crypto payments in the United States.
Lack of clear state and federal laws governing the possession, use, and trade of digital assets has been a major impediment to their use of cryptocurrencies as well as their adoption into the mainstream financial system.
States likely to push back on crypto licensing
Market players have projected that states will back against federal licensing of crypto payments due to an ongoing dispute a fintech charter between OCC and the New York Department of Financial Services.
The licensing initiative is also facing opposition from other players in the mainstream financial industry like John Ryan, president of the Conference of State Bank Supervisors (CSBS), who recently issued a statement expressing the association’s opposition to federal licensing crypto payment methods.
“The OCC’s proposed payments charter is no different than the fintech charter already rejected in federal court and subject to a nationwide order preventing the OCC from accepting applications from a company that does not take deposits,” the letter said.
Despite the opposition, the OCC says it is ready to start receiving applications from firms seeking licensing for crypto payment systems. Players in the U.S crypto industry have welcomed the appointment of Brian Brooks to head the OCC.
Banks are key pillars to crypto adoption in the U.S
The United States Office of the Comptroller of Currency (OCC) was established to increase access and adoption of cryptocurrencies in the U.S. Through the OCC, Federal Savings Associations and National Banks can offer cryptocurrency custody services to customers.
With the new regulations, banks offer custody services for digital assets and recognize them as valid instruments of investment. This is a significant step towards the use of cryptocurrencies. According to Nasdaq, such regulations could see major banks like Wells Fargo and Bank of America offering custody services for digital assets to customers.