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The reported choice to lead the Office of the Comptroller of the Currency (OCC) to US President Joe Biden's purported plans to pick a tough banking and cryptocurrency nominee that would "regulate crypto into oblivion" is increasing.
Everyone Fears That Biden’s OCC Nominee Will ‘Regulate Crypto Into Oblivion’
The planned appointment of law professor Saule Omarova to lead the Federal Bank regulating agency has aroused alarms in political and financial circles, as she is largely seen as anti-crypto and anti-big banks.
“Not only is Saule Omarova, Biden’s pick to lead the OCC, a threat to our traditional economy, she also wants to regulate crypto into oblivion. Crypto faces future-defining government regulations. This nomination needs to be stopped.”
Many Banking Groups Are Fueling Opposition To Her Appointment
Several large banks and banking groups are also opposed to the candidacy, with the American Bankers Association contemplating whether to officially contest it.
In a statement issued on Friday, ABA President and CEO Rob Nichols stated, "We have major reservations about her plans for radically revamping the nation's financial sector."
Pat Toomey, the ranking Republican on the Senate Banking Committee, also came out against the nominee last week, saying he has "strong concerns" because of her "radical socialist beliefs."
According to sources, Rebeca Rainey, president and CEO of the Independent Community Bankers of America, stated that Omarova “would replace locally-based community banking and hinder economic growth in local communities.”
The OCC supervises America's financial titans such as Goldman Sachs, JPMorgan Chase, and Citigroup, and would also control elements of the cryptocurrency sector.
Omarova, who has stated her desire to “end banking as we know it,” is anticipated to impose tighter regulations. She has previously stated that the emergence of cryptocurrencies is “primarily helping the broken financial system we presently have.”
According to Bloomberg, she agrees with anti-crypto legislators such as Senator Elizabeth Warren that digital assets threaten to disrupt the economy. Warren, for her part, said the nomination was "tremendous news" and that she was looking forward to stricter restrictions.
The New Head Of The OCC Has Asked For A Review Of Cryptocurrency Regulations
The OCC has evolved from one of the Treasury's most crypto-forward agencies to one that has shifted course under new leadership.
Brian Brooks, the former head of Coinbase's legal team, joined the OCC in March 2020 and helped prepare the path for legislation permitting banks to hold cryptocurrency.
The banking authority informed national banks in January that they may operate independent nodes for distributed ledger networks such as stablecoins.
However, the tone has shifted since then.
On September 21, acting OCC Chairman Michael Hsu cautioned that decentralized finance products are comparable to those that triggered the 2008 global financial crisis.