American crypto-focused banks are facing a struggle to stay onside after a leading American lawmaker petitioned Michael Hsu, the new Acting Comptroller of the Office of the comptroller of the currency(OCC) to “reassess any conditional national trust charters and halt the approval of any additional charters to non-bank entities” – and effectively embark on a reversal of his predecessor’s pro-crypto policies.
He complained that the firms in question were now “highlighting their federally-chartered status.”
“These companies suggest that the OCC’s approval of their charters guarantees their business model is as safe, stable and dependable for customers as a local community bank. The fact is […] the OCC is not in a position to regulate these entities comparably to traditional banks,” he said.
In a particularly thorny barb aimed at Brooks, Brown wrote,
“It is also unclear whether the OCC engaged in the appropriate due diligence to stand behind this ‘seal of approval’ before granting these charters. Former Acting Comptroller Brian Brooks actively encouraged cryptocurrency companies to apply for a national trust charter because it had ‘relatively easy requirements’ and is ‘just a faster charter to get.’”