Senator Elizabeth Warren of the United States maintains her position against cryptocurrencies by making yet another attempt to limit the participation of Wall Street in the cryptocurrency industry.
Elizabeth Warren is urging her fellow committee members and senators to endorse a letter that will be sent to the Office of the Comptroller of the Currency (OCC) requesting that crypto facilities be removed from the offerings of financial institutions.
Elizabeth Warren Wants to End Banks’ Support for Cryptocurrencies
Elizabeth Warren, a member of the United States Senate Banking Committee, has urged her colleagues to sign a letter requesting that the OCC rescind guidelines that encourage banks to offer cryptocurrency services such as cryptocurrency custody.
The committee is of the opinion that the crypto guideline facilitates the entry of Wall Street banks into the cryptocurrency sector, which in turn increases the dangers for the financial system.
Inside the letter, it is suggested that the OCC collaborate with the Federal Reserve and the FDIC to develop an alternate method for dealing with cryptocurrencies “that appropriately safeguards customers and the security and integrity of the financial system.”
The true outcome of the letter will be delivered to Michael Hsu, who is serving as Acting Comptroller of the OCC. An OCC official referenced recent remarks made by Michael Hsu about worries over the rising involvement of financial institutions in cryptocurrency when responding to a request for comment. This demonstrates that OCC Michael Hsu is interested in revising the cryptocurrency advice for banks.
Hsu has issued a request for enhanced attention with respect to the crypto contagion that might affect the conventional financial sector. The recent instability in the cryptocurrency market led investors to lose billions of dollars, which has prompted politicians and authorities to strengthen their inspection of services connected to cryptocurrencies.
According to the letter, the earlier instructions and legislation provided by the OCC are inadequate to safeguard the banking sector from the recent instability in cryptocurrency markets. In order to protect financial institutions from being exposed to cryptocurrency, it recommends that crypto guidelines be altered or eliminated.