OCC: We won’t ban Bitcoin, we will support further growth

  • U.S. OCC, Brian Brooks, advocates introducing clear regulations for the benefit of Bitcoin investors (BTC).
  • Over the next 6 to 8 weeks, positive announcements will be made for the crypto industry, Brooks said.

The head of the U.S. Office of the Comptroller of the Currency (OCC), Brian Brooks, has made very bullish statements for Bitcoin and the crypto market. In an interview for CNBC’s Squawk Box, Brooks referred to rumors of the possible introduction of new regulations to “self-custody” crypto wallets.

The rumors were addressed by Coinbase CEO Brian Armstrong in a series of tweets he posted last week. He said that the regulation would require exchange platforms to provide more information to verify that users are not utilizing these types of wallets to store their funds in Bitcoin, Ethereum, Litecoin, and others.

In addition, platforms would be required to request information every time a user interacts with an external entity. For example, a smart contract used by a DeFi protocol. The process would worsen the user experience and have negative consequences for the platforms. In response to Armstrong’s allegations, Brooks responded:

Rumors arise at Bitcoin more than anywhere else. The truth is that 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.

The OCC made a very positive decision for the adoption of Bitcoin by allowing banks to offer crypto custody. In that sense, Brooks stated that they will continue to promote and support the progress of this new asset class and blockchain technology.

I think you’re going to see a lot of good news for crypto by the end of the Trump term. Some of it is going to have to do with banks connecting to blockchains, some of it is going to be more clarity around the nature of these assets. Nobody’s going to ban Bitcoin. Nobody’s going to ban some of these transmission technologies.

Regulators will provide clarity about Bitcoin

Brooks pointed out that important announcements will be made in the next 6 to 8 weeks. In addition, he believes that the new regulations will be positive for Bitcoin and for the institutional adoption of cryptocurrencies that have already begun with the participation of PayPal, Square, and other major players. Brooks said:

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.

In the community, OCC’s statements have been welcomed. Especially after 3 legislators introduced the STABLE act to the U.S. Congress that seeks to impose new regulations on stablecoins and their issuers. As some experts pointed out, the crypto market could “suffer” if the commercial activity with Tether, USDC, and other stablecoins is limited. Many investors uses this type of digital assets as a gateway into the crypto market.

About Author

Reynaldo Marquez has closely followed the growth of Bitcoin and blockchain technology since 2016. He has since worked as a columnist on crypto coins covering advances, falls and rises in the market, bifurcations and developments. He believes that crypto coins and blockchain technology will have a great positive impact on people's lives.

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