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US Democratic Senators Want Crypto Guidance Revoked

1 min
Updated by Remmy Bahati
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In Brief

  • Senators ask OCC to revoke crypto guidance.
  • Senators want protections to curb crypto’s risks.
  • Federal Reserve should be engaged on the approach.
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In an open letter dated August 10, three Democratic Senators asked the acting Comptroller, Michael Hsu of the Currency, to revoke guidance allowing National banks to engage in cryptocurrency activities.

“We are concerned that the OCC’s actions on crypto may have exposed the banking system to unnecessary risk and ask that you withdraw existing interpretive letters that have permitted banks to engage in certain crypto-related activities,” the senators wrote in the letter.

The Senators claim that OCC refused to deal the challenges causes by the crypto industry and to set up mitigation measures to protect banks and their customers.

Senators ask OCC to engage the Federal Reserve

The letter, also urges the controller to engage the Federal Reserve and Federal Deposit Insurance Corp to develop a ‘comprehensive approach’ that adequately protects consumers and the safety and soundness of the banking system.

“Given the risks posed by cryptocurrencies to banks and their customers, we request that you withdraw OCC Interpretive Letters 1170, 1172, 1174, and 1179 and coordinate with the Federal Reserve and the Federal Deposit Insurance Corporation to develop a comprehensive approach that adequately protects consumers and the safety and soundness of the banking system,” the Senators said in a letter

The letter was release after the Department of Labor released the consumer index report that bumped up the crypto markets, taking pressure off the Federal Reserve, and now President Biden has vowed to push for the passage of the inflation reduction act that will stabilize the markets.

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Remmy Bahati
Remmy Bahati, is a crypto and technology reporter. She is on Twitter @BahatiRemmy. She has a Master of Science in Journalism from Columbia University in New York City. A...