Recent regulatory approval for banking crypto custody comes after a Coinbase alum took a prominent seat as the Acting Comptroller of the Currency for the the Office of the Comptroller of the Currency, or OCC — a U.S. banking regulator.
“There’s one major change that occured over the last 60 days,” Morgan Creek Digital co-founder Anthony Pompliano said in a July 23 episode of his YouTube show, Lunch Money.
“Brian Brooks, who used to be the chief legal officer of Coinbase, is now the Acting Comptroller of the Currency. He’s in charge, so there’s a Bitcoiner in the hen house, and they let him in.”
U.S. government regulator brings crypto clarity
Crypto sits outside of the mainstream money system, positioning users as their own banks, holding their own funds. Banks, however, often interact with the crypto ecosystem when users send cash to crypto exchanges or services. Some users also may not wish to hold their own funds, tasking services or entities with custody over their crypto capital.
The crypto industry received regulatory clarity from the OCC on July 22, giving federally chartered banks the go-ahead for digital asset custody.
Prior to this ruling, Pomp said a large number of federally regulated banks shied away from crypto involvement, citing OCC restrictions. Pomp noted Brooks made no regulatory alterations, but simply provided clarity to the crypto custody banking scene.
Clarity helps the industry
“Banks are going to build out custodial services, banks are going to go acquire crypto companies,” Pomp said, referring to the future effect of the recent governmental clarity. “Also, you’re going to see crypto companies try to create software to sell into the banks,” he said.
“Every currency will be digital. Digital dollar, digital yen, digital euro, Bitcoin, Libra. Every currency in the world will be digital and the competition will not be at the technology layer, it will be at the monetary policy layer. Bitcoin has the superior monetary policy and Bitcoin will be the global reserve currency.”
A proponent of Bitcoin, Pomp has previously noted the coin as travelling a price line uncorrelated with mainstream markets.