US Regulator To Clarify Whether Banks Can Hold Monero & Other Privacy Coins – Cryptonews

October 7, 2020 By admin

US Regulator To Clarify Whether Banks Can Hold Monero & Other Privacy Coins 101
Source: Adobe/jaflippo

The US Office of the Comptroller of the Currency (OCC) is about to take another step in helping local banks to deal with the Cryptoworld. Brian Brooks, Acting Head of the OCC, confirmed that they hope to clarify whether cryptocurrencies, in particular privacy tokens, such as monero (XMR), zcash (ZEC), are permissible assets for banks to hold, trade or lend.

However, speaking to the Wall Street Journal, he did not specify any further when this clarification might be announced. Cryptonews.com has contacted the OCC for comment. The Office is also looking to determine whether banks can underlie blockchains as payment networks.

“In the early days, because of status-quo bias, people tend to focus on the most conservative, overly restrictive interpretation of the risks in ways that delay adoption of something that later turns out to be like the greatest thing that ever happened,” Brooks, Coinbase’s former general counsel, was quoted as saying in the report.

“And what we’re trying to do is to not make that mistake this time. We’re trying to call balls and strikes. And be careful about the legal risks while unleashing the power of the technology.”

In September, international law firm Perkins Coie said that regulated financial institutions can ensure compliance with anti-money laundering obligations when supporting privacy tokens.

Meanwhile, the latest development comes in line with long-term efforts by pro-crypto lobby groups in the US as, this past July, Coin Center, one of the cryptosphere’s largest lobbies in America, asked OCC to enable banks to get immersed
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