Comptroller shows how cryptocurrency companies can become banks

Assistant Currency Auditor Brian Brooks -That will soon be confirmed full-time- has shown another way for U.S. crypto custodian providers to get the law up and running as a federally recognized bank.

In an interview with Forbes on November 17th Brooks stated that there are currently three methods that payment companies can use to become a federally licensed bank. L.The first option is to apply for national non-custodian status and the other two options are to buy a custodian or apply for national trust status.

But stillBrooks said the Office of the Currency Auditor (OCC) would allow trust companies to become banks.

Comptroller shows how cryptocurrency companies can become banks
Comptroller shows how cryptocurrency companies can become banks

According to Brooks Companies like Anchorage, Coinbase Custody, and Gemini already operate as trust companies under state trust laws.

The acting comptroller said that The OCC had “several requests” from crypto companies to convert these statutes into statutes of the National Trust Bank. Brooks announced this in July The OCC would give federal charter banks permission to provide cryptocurrency custody services.

“Payment companies will be added there in the next few months” Said Brooks.

“The no deposit magic card… We don’t have that yet, but we can get started. As for the others, yes, absolutely, we have approved a letter and we will have one shortly. “

The statement comes the same day that President Donald Trump announced his intention to make Brooks the interim comptroller of the currency.

With only 63 days to go to the end of his term, Trump made a statement through the White House website that he would nominate Brooks for a five-year term as currency auditor. The Republican-controlled Senate has yet to approve the outgoing politician’s appointment before Brooks can serve as a full-time controller. If successful, he could serve until a possible second term for President Joe Biden or the first term of his successor.

Brooks, the former legal director of the Coinbase crypto exchange, has been in the temporary position since May. Treasury Secretary Steve Mnuchin appointed Brooks after the resignation of former Comptroller Joseph Otting.

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