Banks against uninsured crypto licenses
The leading banking lobby in the US, the American Bankers Association (ABA), is urging the Office of the Comptroller of the Currency (OCC) to be more careful in issuing licenses to crypto companies that do not have deposit insurance.
According to the ABA, before approving new licenses for crypto firms, the OCC must confirm that regulators have enough tools to resolve crisis situations in such organizations. This is especially relevant against the backdrop of the recent collapse of the FTX crypto exchange, which highlighted the vulnerabilities of the industry.
The banking community is concerned that the creation of new crypto licenses without deposit insurance may lead to the emergence of 'shadow banks' that will not meet the same safety and transparency standards as traditional financial institutions.
Experts believe that the ABA's position reflects the banks' desire to protect their market share from the expansion of crypto companies. However, their concerns are well-founded, given the recent high-profile bankruptcies in the crypto space.
Conclusion
Tightening the regulation of the crypto business is an urgent necessity, and the banking community plays an important role in this process. A reasonable approach by the OCC to issuing licenses to crypto companies will help protect the interests of consumers as well as the stability of the entire financial system.