US banking regulator wants banks and crypto to band together

The US banking regulator, the Office of the Comptroller of the Currency (OCC) is seeking advice from the public on how banks and crypto can work together toward a common goal to strengthen the economy.

Brian Brooks, a former legal counsel at cryptocurrency exchange Coinbase who now serves as the Acting Comptroller of the US banking regulator OCC, is seeking feedback on how to integrate the two strikingly different financial institutions successfully.

US banking regulator seeks to fill the gap between crypto and banking

The race to incorporate crypto in the global financial system is getting real. And in his bid to strengthen cross-border remittances and set the course for the future of payments, Brooks is doing his best to find answers to this long-standing problem. 

On June 4, the US banking regulator asked banks, other financial institutions, and the crypto industry’s prominent figures to respond to a range of questions. He wanted their inputs on what form of crypto-related activities banks are currently engaged in, what is the latest and upcoming trend in consumer demand, and what kind of shortcomings must the two overcome for meaningful collaboration.

Finding the optimal solution

Brooks also added that the US banking regulator eventually seeks to bridge the gap between traditional finance and crypto. It’s an issue that has emerged as a promising case study for some of the leading technology companies and banks who wish to reform obsolete banking practices by leveraging the power of crypto and blockchain.

We want to know the way in which banks can help the crypto industry grow and serve their customers better. We wish to know their banking needs, and similarly, banks can voice their opinion on how cryptocurrency and blockchain can be leveraged to make international settlements easier, faster, and cost-effective.

Subsequently, the US banking regulator is interested in drawing attention to other massively useful domains such as the distributed ledger technology (DLT) and artificial intelligence (AI). 

How DLT and AI can breathe life into some of the time-consuming banking activities like identity validation, credit tracking and underwriting, payment settlements, data management, and trade finance? Is there any subject of application that needs further clarification or improvement? Are the regulatory guidelines transparent as well as sufficient?

The US banking regulator will accept feedback and suggestions for improvement until Aug 3. With this initiative, it hopes to pave the way for a next-generation financial system that brings the best of both worlds together.

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