Banks Are Cleared To Work With Stablecoins

Plus a crypto ponzi shows up in the FinCEN Files

Happy Tuesday, Blockfolians

The Lede

Earlier this year, the crypto industry took notice when former Coinbase lawyer Brian Brooks was named acting comptroller in the Office of the Comptroller of the Currency (OCC) - the top bank regulation position in the country.

Coinbase Loses Chief Legal Officer To US Office of the Comptroller of the  Currency

This week, we again saw the benefit of someone with a crypto background in that role as the OCC and SEC have provided new guidance supporting banks to work with stablecoin issuers.

Stablecoin issuers have been using U.S.  banks for years, but in an unclear regulatory environment. Now, the OCC wants federally regulated banks to feel comfortable providing services to stablecoin issuers, it said in a press release. An accompanying interpretative letter, signed by Senior Deputy Comptroller Jonathan Gould, explained that while banks should conduct due diligence and ensure they assess the risks of banking any stablecoin issuers, stablecoins are becoming increasingly popular.

This is great news for the industry. Stablecoins are one of the breakout crypto uses of 2020, nearly quadrupling in total circulating supply since the beginning of the year. The new guidance effectively legitimates this sector and creates new opportunities to expand.

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Highly Relevant Reading


Community Commentary

Boy howdy he’s not wrong. There is a LOT of chatter around NFTs right now.
Case in point:

A Really Big Number We Should Be Paying Attention To  

$137,000,000

That’s the amount BNY Mellon processed in relation to the crypto Ponzi scheme OneCoin, according to the just released FinCEN Files.


Final Thought

Chamath’s investing framework is pretty interesting to read