New acting comptroller of the Office of the Comptroller of the Currency (OCC) Brian Brooks announced that this coming fall season, banks can expect to see what the OCC is calling the new Payments Charter 1.0, which could potentially provide service in the interest of both fintech and cryptocurrencies.
A Payments Charter Is Whats Needed to Help Banks and Crypto Alike
As it stands, the way the U.S. government works is that banks are required to earn money-transmitting certificates dependent on their own states rules. Thus, California will have different rules from Arizona, while that states banks will be different from New York, and thats states rules will be the opposite of Montanas. The process can get very lengthy and complicated, and the OCC wants to make things considerably simpler in the coming months.
Thats where the new Payments Charter 1.0 comes in. This would be a charter introduced at the federal level and would enforce the same rules for all banks regardless of what state they were situated in. They follow the federal regulations set forth in the charter, and thus, they are permitted to serve as money-transfer businesses, which means that it is within their rights to provide cryptocurrencies to customers and offer crypto-related services.
Brooks says that this will largely work for customers who are seeking ways to have their portfolios and assets bundled up into unique packages. He explains:
Its not clear that customers always want their financial services in bundled form. One of the reasons for a rise in fintech is an unbundling that is happening.
He has also stated that the Fed has expressed concern over potential risks involved with the new charter, and that its going to sit back and watch for a while. Brooks is taking it upon himself to convince the Fed that this is the right thing to do, and that things depend on how persuasive he can be.
Others Pushing for Change
Hes not the only one pushing the introduction of the new charter. Amy Luo – senior co ...