Saturday, May 8, 2021
Home Latest News Policy and regulation US Regulator Wants to Stop Unfair Practices Against Crypto Businesses

US Regulator Wants to Stop Unfair Practices Against Crypto Businesses

OCC head says new rule-making wants to stop creeping politicization of the banking industry.

According to an announcement on Friday, the Office of the Comptroller of the Currency (OCC), is searching for public comments on rule-making that would stop banks from denying services to businesses based on sector.

As reported by cointelegraph, The OCC’s announcement refers to political hot-button issues that banks have regularly denied services to, including oil and gas companies in Alaska as well as Planned Parenthood.

Brooks noted the bipartisan nature of many of these bans: “These things are not politically partisan, but there are all kinds of attempts that we’ve seen to politically weaponize the banking system.” He also added that, “There is a creeping politicization of the banking industry that has the potential to be very dangerous.”

Brooks stated:

“There is no place within the United States where crypto is illegal, but there are different licensing requirements for companies involved with businesses so obviously if a bank was banking one of those businesses, one of the things that bank would look at as part of its diligence is whether that exchange or other business had the relevant approvals in that state.”

According to cryptopotato, the OCC wants to end with the silent discrimination against crypto businesses. Instead of using general considerations towards all crypto businesses, banks should now evaluate each company separately. The “Fair Access to Financial Services” proposal seeks support a greater way to evaluate the risk of particular businesses like fintechs, exchanges, payment protocols, etc.

Subscribe to our newsletter

To be updated with all the latest news, offers and special announcements.


Please enter your comment!
Please enter your name here

- Advertisment -

Must Read