Brian Brooks, Acting Head of the US Office of the Comptroller of the Currency and former Legal Director of Coinbase, has warned that the Consumer Financial Protection Bureau has been granted the right to grant “fintech charters”.
Earlier this week, the CFPB’s Consumer Financial Law Task Force published a report containing 102 policy recommendations aimed at “improving and strengthening” financial regulations, including a proposal for Congress to empower the CFPB for non-federal depository institutions – financial firms that do not accept Customer deposits and other financial services fee collection.
Under Brian Brooks’ leadership, the OCC created the FinTech Special Purpose Payments Charter in 2020, paving the way for certain crypto companies to apply for recognition as a national bank. Paxos and BitPay He sought approval for the lease Under the new system in December.
If the CFPB’s right to hire fintech firms were extended, it could reduce regulatory clarity regarding which agencies non-custodial crypto firms must apply to, and create an overlap between the mandates of the two agencies.
On January 6th statementThe Acting Chairman of the Foreign Trade Commission rejected the CFPB’s request for the right to hire fintech firms, warning that the move would undermine legislation aimed at separating the regulatory responsibilities of the two agencies after the 2008 financial crisis:
“In accordance with his wisdom, Congress separated the Dodd-Frank Charter granting and precautionary oversight from consumer protection enforcement, and granted rental authority to the FCC and specific consumer protection enforcement authority to the CFPB.”
Brooks argued that the current dynamic “should be preserved” to ensure that the responsibilities of any of the regulators did not overlap, pointing to “additional safeguards implemented in the wake of the recent financial crisis.” […] Separating those responsibilities so that none of them is compromised in the service of the other. “
“This dynamic must be maintained so that the CFPB continues to enforce compliance with the few financial consumer protection laws for financial firms specified under the Dodd-Frank Act, while avoiding creating a prudential oversight gap that could lead to safety and health risks.”
On January 4, the OCC published guidance to inform national banks of its ability to do so Using public blockchains and dollar stablecoins for settlementOperate nodes and act as auditors for blockchain networks.