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Biden’s nominee for the OCC has sparks outrage

Legal

www.thecoinrepublic.com 29 September 2021 16:05, UTC
  
Reading time: ~3 m

  • Senator Ted Cruz of Texas is one of a handful of politicians and bankers who oppose Saule Omarova’s nomination
  • Senator Ted Cruz of Texas is the latest crypto supporter to speak out
  • National banks were notified in January that they could establish separate nodes by the banking regulator

Senator Ted Cruz of Texas is one of a handful of politicians and bankers who oppose Saule Omarova’s nomination. President Joe Biden’s reported plans to choose a hard banking and crypto critic to lead the Office of the Comptroller of the Currency have sparked outrage (OCC). The potential appointment of law professor Saule Omarova to lead the federal bank’s regulating body has sparked controversy in political and financial circles, as she is widely seen as anti-crypto and anti-big banks.

Ted Cruz speaking out about her policies in the crypto industry

In a tweet on September 28, Texas Republican Senator Ted Cruz became the latest crypto ally to speak out, warning that her policies, if she is chosen, might affect the future of the industry. Not only is Biden’s candidate for the OCC, Saule Omarova, a menace to our traditional economy, but she also wants to regulate crypto into oblivion. Government laws that will shape the future of cryptocurrency are in the works. This nomination must be withdrawn.

A number of major banks and banking organizations are also opposed to the appointment, with the American Bankers Association discussing whether or not to challenge the candidacy openly. In a statement released on September 24, ABA President and CEO Rob Nichols expressed major reservations about her plans to radically restructure the nation’s banking system.

Pat Toomey speaking against the nomination

Pat Toomey, the ranking Republican on the Senate Banking Committee, also spoke out against the nomination last week, expressing major misgivings about her radical leftist views. According to sources, Rebeca Rainey, president, and CEO of the Independent Community Bankers of America stated that Omarova would supplant locally-based community banking and limit economic progress in local communities.

The OCC is in charge of overseeing American financial behemoths like Goldman Sachs, JPMorgan Chase, and Citigroup, as well as sections of the crypto business. Omarova, who earlier stated that she wanted to abolish banking as we know it, is expected to implement harsher regulations. She also claims that the rise of cryptocurrency is mostly benefiting our already damaged banking system.

According to Bloomberg, she agrees with anti-crypto lawmakers like Senator Elizabeth Warren that digital assets threaten to destabilize the economy. Warren, for one, said the nomination was fantastic news and that she was looking forward to stricter rules.

The OCC has gone from being one of the Treasury’s most crypto-forward agencies to reversing course under new leadership. Brian Brooks, the former head of Coinbase’s legal team, joined the OCC in March 2020 and helped prepare the road for legislation permitting banks to hold cryptocurrency.

National banks were notified in January that they could deploy independent nodes for distributed ledger networks like stablecoins by the banking authority. The tone of the conversation then shifted. Acting OCC Chairman Michael Hsu cautioned on September 21 that decentralized finance products are similar to those that triggered the global financial crisis in 2008.


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