In an interview with CNBC’s Squawkbox, the US Comptroller, Brian Brooks, announced in-coming crypto regulations to start before the end of the current administration.
While details remain unknown, the OCC (Office of the Comptroller of the Currency) mentioned that bank involvement with digital coins will increase. The goal being to create a safer environment for investors by clarifying the functionality of cryptocurrency in the financial industry.
“We need some guidance, for example, about whether banks can connect directly to blockchains as payment networks. The answer has to be yes. We need answers about [whether] banks can custody cryptocurrency so that institutions feel comfortable adopting,” said Brooks.
If implemented, this policy would alter the fabric of a decentralized mode of currency—the backbone of cryptocurrency. Banks accessing blockchain could mean an authority controlling transactions, which is the antithesis of crypto.
However, Brooks tried to reassure the crypto community that the regulations would not aim to hinder its growth and development rather provide clarity. He also said that his hope would be to drive more of the public toward the use of cryptocurrencies once the regulations are in place.
Reactions to incoming regulations had several big names in crypto worried over the past weeks including the CEO of Coinbase.
Last week we heard rumors that the U.S. Treasury and Secretary Mnuchin were planning to rush out some new regulation regarding self-hosted crypto wallets before the end of his term. I’m concerned that this would have unintended side effects, and wanted to share those concerns.
— Brian Armstrong (@brian_armstrong) November 25, 2020
Ripple has also expressed concerns over unclear regulations in the U.S. Back in October, Ripple Labs expressed their desire to move out of the country if they don’t get answers. This is rightly so as regulations could greatly affect cryptocurrencies and the companies behind them.