US Bank Regulator Calls for Balanced Bitcoin Oversight

The head of the US Office of the Comptroller of the Currency has called for balanced regulation for financial technology such as bitcoin.

AccessTimeIconAug 10, 2015 at 7:13 p.m. UTC
Updated Sep 11, 2021 at 11:49 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The head of the Office of the Comptroller of the Currency (OCC) has called for a balanced approach to regulation governing financial technology development in the United States, citing bitcoin as one such example.

after calling digital currencies "potentially revolutionary", OCC Comptroller Thomas Curry highlighted bitcoin during a recent speech as he called for regulators to avoid crafting overly burdensome rules that could stifle otherwise productive work on financial technology.

He stated:

"As the industry continues to innovate, it’s important that regulators strike the right balance between encouraging responsible innovation and managing risk. Virtual currency, like bitcoin provides a good example."

Curry said the agency has put together a working group that will "develop a framework to evaluate new and innovative financial products and services".

"We have a team with representatives from across the agency – policy experts, examiners, lawyers, and others – considering this question," he said. "We’re still early in the process, so I can’t tell you exactly where we’ll end up."

Curry added one result could be the creation of an office dedicated to financial innovation.

Moving away from the banking sector

Notably, Curry acknowledged during his speech that financial technology is largely being developed outside regulated entities like banks.

He said:

"There are a number of reasons why that’s so, but the one that’s of most concern to me is the perception that it’s too difficult to get new ideas through the regulatory approval process."

The working group, he said, was launched "to address that perception – and any reality that might lie behind it". He also called on regulators to "view new ideas with an open mind and not dismiss them as either sorcery or voodoo".

Curry noted in his speech that he sees a "transformation" continuing to take place outside the banking sector that could lead to new products and services, particularly those geared toward the underbanked.

"I’m betting that much of that transformation will take place inside the traditional banking system, and I want the OCC to be ready to deal with it," he said.

The agency did not immediately respond to a request for comment.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.