On Wednesday night, the collective worth of all cryptocurrencies crossed $1T (with a frickin “T”). And on Thursday, Bitcoin, probably the most outstanding coin, hit $40k — 2x its value from only a month in the past.
Whereas these are big milestones for the business, it might not even be probably the most consequential ones of the week.
The Workplace of the Comptroller of the Foreign money (OCC) — a bank-regulating bureau throughout the Treasury Division — has issued steerage saying banks might undertake sure blockchain applied sciences.
Particularly, chartered banks can deploy stablecoins, that are extra… er… steady than different crypto as a result of they’re pegged to different property.
The OCC has been very forward-looking on funds…
… since a former Coinbase govt, Brian Brooks, took over the bureau in Could 2020.
Based on Forbes, Brooks has beforehand:
- Issued steerage permitting banks to custody cryptocurrencies
- Created a particular cost constitution for fintech companies
One DC lawyer mentioned the OCC was equally forward of the pack on web banking, and the newest steerage (AKA an interpretative letter) will assist make crypto extra mainstream.
What does this actually imply?
Jeremy Allaire, CEO of blockchain funds startup Circle, says the OCC’s move is necessary as a result of it:
- Permits banks to deal with blockchain like different funds infrastructure (e.g., SWIFT, ACH)
- Permits banks to make use of decentralized and quicker settlement know-how
- Creates a path for the US to create its personal digital forex (AKA a “USDC”)
Furtner, Forbes notes that there’s an enormous alternative to enhance the pace of cross-border transactions if US banks deploy blockchain.
The adjustments are taking place too quick for some
In November, 6 members of Congress criticized the OCC for transferring “unilaterally” on crypto regulation.
The OCC itself acknowledges that banks must increase “compliance packages” to take care of any blockchain-related transactions.
In the meantime, one other US bureau with the Treasury Division, the Monetary Crimes Enforcement Community (FinCEN), launched extra stringent guidelines on information assortment for digital wallets.
Crypto is transferring quick, however there are nonetheless some hurdles to clear till the subsequent trillion (with a frickin’ “T”) in market worth is created.