Here's who's in charge of keeping crypto out of the'regulated economy.'

 Here’s who’s in charge of keeping crypto out of the’regulated economy.’

Brian Brooks, the CEO of Bitfury and a former Acting Comptroller of the Currency, is concerned that individuals advocating for cryptocurrency rules are actually trying to prevent this from happening.

In a recent interview with Fox News, the executive stated that if authorities are serious about establishing a regulatory framework for crypto-assets, they will "allow it to enter the existing system" of banks and brokers. He went on to say,

“You’d let banks use Solana and Ethereum to clear payments as opposed to using FED wire and the automated clearing house… The same people who claim to want to have want regulation are the ones preventing it from entering the regulated economy.”

Is there trouble brewing?

In his capacity as the OCC last year, Brooks had also tried to link the digital asset and banking industries by authorizing federal banks to custody cryptocurrencies, hold fiat reserves for stablecoin operators, and operate cryptocurrency network nodes. Even as these authorizations have been maintained by the current OCC, a lack of clear guidelines along with political complications has stalled such moves.

Furthermore, restrictions for the same could come from a combination of the OCC, the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission, depending on the type of bank and its recommendations (CFTC).

Brooks also told Fox that the way to regulating new technologies like blockchain and cryptocurrency, unlike derivatives and leading, is not to create a new regulatory body. Rather, they should be included into current financial systems. He continued,

“The issue is to understand how this tech fits into the current framework and letting investors and builders move forward.”

Interestingly, he had raised a similar concern in front of the U.S House Committee on Financial Services earlier this week. At the time, he argued that crypto is “just a step function improvement in the system,” instead of being something completely new and in need of a whole new regime.

One of the key concerns among regulators and industry participants, such as Brooks, is the flow of innovation out of the United States as a result of the country's "fragmented regulatory approach." Indeed, this has pushed genuine business overseas.

Even Congressman Ted Budd recently stated that he is concerned that the United States' present enforcement-based regulatory strategy may "force the next generation of financial technology to be created outside of our country."

 

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