U.S. Senator Elizabeth Warren continues her anti-crypto stance with another effort to reduce the Wall Street foray into the crypto market. Elizabeth Warren, a member of the Senate Banking Committee, urges committee members and Senators to sign a letter to the Office of the Comptroller of the Currency (OCC) calling for the withdrawal of crypto services offered by banks.
Elizabeth Warren Seeks to End Wall Street Banks’ Support for Crypto
U.S. Senate Banking Committee member Elizabeth Warren urges Senate members to sign a letter seeking to withdraw an OCC guidance for banks to offer crypto services such as crypto custody. The committee believes the crypto guidance helps Wall Street banks foray into the crypto market, increasing risks for the banking system.
The letter recommends the OCC create an alternative crypto approach with the Federal Reserve and the Federal Deposit Insurance Corp. (FDIC) “that adequately protects consumers and the safety and soundness of the banking system.”
The Senate Banking Committee will send the final version of the letter to OCC Acting Comptroller Michael Hsu. In a request for comment, an OCC representative referred to Michael Hsu’s recent comments on concerns over the increasing foray of banks into crypto. It shows OCC Michael Hsu’s interest in changing the crypto guidance for banks.
Hsu has called for increased caution regarding the crypto contagion to the traditional financial system. The recent crypto turmoil caused investors to lose billions in money, urging lawmakers and regulators to increase scrutiny on crypto-related services.
The letter says the OCC’s prior guidance and laws are insufficient to protect the banking system from the recent crypto turmoil. It urges changes and removal of crypto guidance for banks to prevent exposure to cryptocurrencies.
“We are concerned that the OCC has failed to properly address the shortcomings of the preceding interpretive letters and the risks associated with crypto-related banking activities, which have grown more severe in recent months.”
The letter also seeks details on the regulated banks currently offering crypto-related services and the total dollar volume on these services.
U.S. SEC and Senators’ Strict Stance After the Crypto Crisis
SEC Chair Gary Gensler and Banking Committee Chair Sherrod Brown and member Senator Elizabeth Warren have urged for increased regulatory oversight on crypto activities and companies.
SEC Gensler’s approach on crypto policies and forced jurisdiction have been criticized by the crypto community as well as by other regulators and lawmakers. Crypto investors have even signed a petition to make Gensler resign from the position.
Warren and Brown are pressurizing regulators to combat crypto fraud and risks. Elizabeth Warren recently sent a letter to regulators to take action against crypto miners for high energy usage.