US Bank Regulator Charts Path for Blockchain Startup Oversight

A major US banking regulatory has unveiled a broad innovation policy aimed at regulating blockchain startups and other fintechs.

AccessTimeIconOct 28, 2016 at 1:37 p.m. UTC
Updated Sep 11, 2021 at 12:35 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

A US banking regulator has unveiled a broad innovation policy aimed at regulating startups working with blockchain and other fintech.

On 26th October, the Office of the Comptroller of the Currency (OCC) released its “responsible innovation framework”, a policy outline that the agency has been working on since earlier this year. In March, the OCC released a white paper setting out its objectives.

The agency will establish an “Office of Innovation”, headquartered in Washington, DC, that will spearhead policy development and outreach as it relates to fintech.

The head of that office, who will be appointed as the chief innovation officer for the OCC, will report directly to Comptroller Thomas Curry. The OCC said it will also expand internal training programs to educate staff on technologies like blockchain.

In its report, the agency sought to highlight the rapidly evolving face of finance, noting:

“Today, fintechs engage in the traditional banking functions of consumer lending, payments, wealth management, and settlements. Fintechs also are leveraging new technologies and processes, such as cloud computing, application programming interfaces, distributed ledgers, artificial intelligence, and big data analytics.”

The OCC has sought to present an active voice amidst the shifting regulatory landscape for the technology in the US, calling last year for a “balanced” approach to bitcoin regulation. At the same time, the OCC included the tech in a banking risk assessment released in July.

The framework launch, however, is only the start of what could be a more significant – and contentious – process.

Earlier this year, the OCC began looking at the question of whether to create a special kind of federal charter for fintechs. As of this week, that process is still ongoing.

“The OCC’s assessment of granting a special purpose national bank charter to nonbank financial technology companies, and under what conditions, continues,” the agency said. “The OCC has made no determination regarding chartering of these firms.”

Image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.