The US might be about to change its rules about cryptocurrencies, RegTech and digital banking in a big way.
The Office of the Comptroller of the Currency (OCC) has asked industry stakeholders for some feedback about how it should deal with digital banking, RegTech and crypto assets in the future.
In a notice proposing new rules, the OCC particularly looked at regulations 12 CFR 7, subpart E and 155, and any other banking issues related to digital technology and innovation.
Firstly, the regulator wanted to find out if the rules were clear enough, given the technological advances made over the past two decades and if they create unnecessary legal hurdles for banks to innovate.
Moreover, the OCC wanted to learn if there were any digital banking activities or issues that are not covered by these rules that the OCC should address. Particularly, the regulator was keen to hear about things such as digital finders’ activities, certain software, and correspondent services.
Looking at cryptocurrencies and cryptoassets, the OCC wanted to hear what activities related to these that financial services companies or bank customers engage in and what the roadblocks to further adoption of crypto-related activities in the banking industry are.
Blockchain has also being adopted across both the financial sector and the world in general over the past few years. As such, it should be unsurprising that the OCC also wanted insights regarding how distributed ledger technology used or potentially used in activities related to banking, as well as artificial intelligence and machine learning techniques used.
Additionally, the OCC wanted to to hear about what new payments technologies and processes should the OCC be aware of and what are the potential implications of these technologies and processes for the banking industry.
RegTech has become a huge sector over the past few years, which is why the OCC also want to hear about what tools financial services companies use to comply with regulations and supervisory expectations.
It also wanted to hear about any issues smaller institutions face regarding the use and implementation of innovative products, services, or processes that the OCC should consider, what other changes to the development and delivery of banking products and services the OCC should be aware of and consider. Finally, the OCC also wanted to know whether there are issues the OCC should consider in light of changes in the banking system that have occurred in response to the COVID-19 pandemic.
The deadline to provide feedback is on August 3, 2020.
Copyright © 2018 RegTech Analyst
