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US Banking Regulator to Unveil New Payments Charter

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On June 26, 2020, Brian Brooks, the new Acting Comptroller of the Currency (OCC), revealed plans to unveil a new national ‘Payments Charter 1.0.’

Speaking to a representative of the American Bankers Association (ABA), Brooks described the evolution of banking in today’s world, arguing that it’s not clear that customers always want their financial services in a bundled form. 

He continued:

“One of the reasons for a rise in FinTech is an unbundling that is happening.”

Brooks noted that with many U.S financial service providers operating global businesses, it is difficult for the government to make a case for these startups requiring licenses at the state, not the national level.

For those companies looking for a federal licensing platform for their payments business, Brooks declared that in the Fall of 2020, the first version of a possible ‘Payments Charter’ would be published by the OCC.

As acting Comptroller of the Currency, Brooks is the administrator of the federal banking system and is responsible for overseeing financial organizations such as Wells Fargo and JPMorgan Chase.

The Bank Charter Has To Evolve To Fulfill National Mandate

According to Amy Lu0, Senior Counsel, Global Business Development, and Stablecoins at Coinbase, recently commented that a national Payments Charter could open the door for more U.S. businesses to compete and ultimately bring better products and services to the market, including virtual currencies. 

Brooks’ role as the new acting Comptroller of the Currency could be a great boost for the digital assets sphere, given that the top banking regulator has great experience in crypto. 

The pro-crypto regulator for the Trump administration took over at the OCC just two months after leaving his position as COO at Coinbase exchange

With his background, the new acting comptroller seems to have his sights on rewriting existing regulation on digital bank activities, which could foster the wider acceptance of crypto in the banking sector.

Brooks Sees Great Promise in Blockchain and Crypto

In a recent Forbes interview, Brooks stated that he is looking to decentralized networks such as Bitcoin and Ripple to solve many of the issues deterring more than 1000 financial establishments under his purview. 

In particular, he argued that the current SWIFT network hinders remittances by charging hefty foreign exchange fees, highlighting that such problems can be eliminated using digital assets.

In November of last year, Brooks wrote an essay advocating for the creation of a digital dollar built by the private sector. 

Wayne Jones
Wayne is a Blockchain enthusiast and expert in crypto trading. Currently, I cover trendy issues on digital currencies.

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