Senators Warren, Durbin, Whitehouse, and Sanders Ask OCC to Rescind and Replace Cryptocurrency Guidance

Several U.S. senators have sent a letter asking the Office of the Comptroller of the Currency (OCC) to cut back previous cryptocurrency guidance in favor of more comprehensive rules, a press release from Warren said.

Sens. Elizabeth Warren (D-Mass.), Dick Durbin (D-Ill.), Sheldon Whitehouse (D-R.I.), and Bernie Sanders (I-Vt.) were the ones behind the letter.

They also wanted to know about how much banks have been engaging in crypto-related activities.

“In light of recent turmoil in the crypto market, we are concerned that the OCC’s actions on crypto may have exposed the banking system to unnecessary risk, and ask that you withdraw existing interpretive letters that have permitted banks to engage in certain crypto-related activities,” wrote the lawmakers.

The letter was addressed to Acting Comptroller of the Currency Michael Hsu. The regulations came from his predecessor, Brian Brooks, and they said banks were authorized to engage in some crypto activities including providing crypto custody service for customers, holding deposits that are reserves for some stablecoins and using independent node verification networks (INVNs) and stablecoins for payments.

The lawmakers say these things aren’t able to properly deal with the risks of crypto and other related services. The rules as they are could allow banks a wide leniency to deal in “problematic” crypto behaviors.

The lawmakers say they want more of a comprehensive approach and some answers to questions they have by Aug. 23, 2022.

Warren has been outspoken about crypto issues, with PYMNTS writing recently that she raised concerns over the same issues earlier this year, asking Hsu to revoke the pro-crypto rules.

Read more: Sen. Warren Issues Rallying Cry to Counter Crypto’s Influence Over Banks

Warren cited recent crypto troubles like the collapse of the terraUSD stablecoin and numerous bankruptcies and instances of crypto companies freezing withdrawals for customers due to the troubles.

Hsu’s stance before this has mostly been seen as saying “ask first so we can tell you no,” PYMNTS wrote.