In a recent address in Washington, D.C., Jonathan Gould, the head of the Office of the Comptroller of the Currency (OCC), expressed a strong commitment to dismantling the “two-tiered system” he says unfairly stigmatizes legal activities between traditional banks and the crypto industry.
Gould articulated his belief that many of the activities associated with cryptocurrencies and the underlying technologies are essential to modern financial intermediation services.
His focus is on ensuring that banks can participate in these legally permissible activities in a manner that prioritizes safety and soundness. As regulators, he insists it is their obligation to facilitate such engagement without imposing unnecessary barriers.
Since taking office earlier this year, President Trump’s administration has taken steps to support the industry, including issuing executive orders, regulating stablecoins, and calling for the creation of a national digital asset stockpile.
Bloomberg reports that the OCC has also sought to combat the practice of debanking, which involves denying banking services to certain individuals or businesses, often impacting “politically sensitive clients” like cryptocurrency firms.
The Office of the Comptroller of the Currency’s head acknowledged that when banks consider entering new activities, they must develop the necessary infrastructure to support these initiatives.
He reiterated that while the OCC’s regulatory framework needs to address the unique risks posed by new technologies like crypto, innovation should not inherently conflict with safety and soundness.
“I don’t see innovation as inconsistent with safety and soundness on its face,” he asserted, highlighting a forward-looking approach that balances risk management with the need for financial innovation.
Featured image from DALL-E, chart from TradingView.com
