OCC Head Gould Says Banks’ Crypto-Related Activities Are Legally Permissible

Comptroller of the Currency Jonathan Gould said Wednesday (Sept. 10) that the crypto-related activities that many banks want to participate in are legally permissible and that these activities should not be stigmatized.

Speaking at a CoinDesk event in Washington, Gould said the technology and processes underlying crypto are “inherent to financial intermediation services,” Bloomberg reported Wednesday.

“We’re going to take a step back to see if we’re going to work much more closely with those who are interested in doing these activities, and we’re going to chart a path to ensure you can do it in a safe and sound manner,” Gould said, according to the report. “This is our obligation as supervisors and regulators when you’re engaged in legally permissible activities.”

CoinDesk reported that Gould said at the event that the crypto community’s complaints about debanking are valid and that he has heard such complaints as recently as last week.

“Debanking is real,” Gould said, per the report. “It is a real phenomenon.”

The Office of the Comptroller of the Currency said Monday (Sept. 8) that it aims to “depoliticize banking” and eliminate “unlawful debanking.”

The OCC released two bulletins to banks on that day, with one saying that the regulator assesses debanking considerations when evaluating licensing activities and when determining a bank’s Community Reinvestment Act rating, and the other reminding financial institutions of their responsibilities around customer financial records and suspicious activity reports and encouraging them to ensure they avoid unlawful debanking.

“The OCC is taking steps to end the weaponization of the financial system,” Gould said in a Monday press release. “We are working to root out bank activities that unlawfully debank or discriminate against customers on the basis of political or religious beliefs, or lawful business activities.”

PYMNTS reported July 11, the day after Gould was confirmed as comptroller of the currency, that Gould’s experience as chief legal officer at blockchain firm Bitfury and a previous tenure at the OCC during the previous Trump administration as senior deputy comptroller and chief counsel signaled a relaxation of digital asset regulations, particularly for banks, and an easier path for some nonbanks and digital upstarts to obtain banking charters.