Opposition to US President Joe Biden’s plans to appoint a staunch crypto and banking critic to head the office of auditor is growing (OCC).
The proposed appointment of law professor Saule Omarova as head of the Federal Banking Authority has raised political and financial concernsas it is widely viewed as the opposite of cryptocurrencies and large banks.
The Republican Senator from Texas Ted Cruz, is the last cryptocurrency ally to speak, in a. indicate tweetOn September 28th that his decisions, if nominated, could change the future of the industry.
“Saule Omarova, who was chosen by Biden to lead the OCC, is not only a threat to our traditional economy, but she also wants cryptocurrencies to be forgotten. Cryptocurrencies face government regulations that determine the future. This nomination has to be stopped.
A number of large banks and banking associations are also against the nomination.The American Bankers Association is debating whether to publicly oppose the decision. The President and CEO of ABA, Rob Nichols said “we have serious doubts about his ideas about fundamentally restructuring the country’s banking system”., in a statement dated Sept. 24.
Senior Republican on the Senate Banking Committee, Pat Toomey also spoke out against the nomination last week, saying he had “serious reservations” about his “left-wing extremist ideas”..
The President and CEO of Independent Community Bankers of America, Rebecca Rainey said Omarova reportedly “is crowding out locally-based community banking and limiting economic growth for local communities.”.
OCC oversees America’s banking giantssuch as Goldman Sachs, JPMorgan and Citi Group, and would also cover aspects of the cryptocurrency industry.
Omarova, who said she wanted to get rid of “banking as we know it,” is likely to apply stricter rules. He has also claimed that the cryptocurrency boom is “primarily benefiting the dysfunctional financial system we already have”.
Omarova shares views with anti-crypto lawmakers like Senator Elizabeth Warren that digital assets threaten to destabilize the economy., so Bloomberg. For his part, Warren said the appointment was “tremendous news” and he anticipated stricter regulation.
The OCC has grown from one of the financial authorities most vulnerable to cryptocurrencies to one that changed direction under later leadership.. Former head of Coinbase’s legal team, Brian Brooks, joined the OCC in March 2020, paving the way for legislation that allows banks to hold cryptocurrencies.
In January banking regulators informed the national banks that they could operate separate nodes for distributed ledger networks such as stablecoins.. But then the tone changed. On September 21st, the acting head of the OCC, Michael Hsu, warned that decentralized financial products are similar to those that sparked the global financial crisis in 2008.