US bank regulator: Bitcoin regulation needs to balance innovation and risk control

On August 11, according to Coindesk, the head of the U.S. Office of the Comptroller of the Currency (OCC) called for a balanced regulatory approach to the development of financial technology in the United States, and pointed out that Bitcoin is such an example.

The Office of the Comptroller of the Currency is responsible for supervising national banks and federally registered foreign bank branches in the United States. It is the oldest federal government financial regulatory agency in the United States and is affiliated with the U.S. Treasury Department. At the same time, its supervision of banks is aimed at improving the security and soundness of the national banking system and ensuring that the products and services provided by national banks meet legal standards.

Months after calling digital currencies “potentially revolutionary,” the agency’s comptroller, Thomas Curry, singled out bitcoin in a recent speech, calling on regulators to avoid overly burdensome rules that could stifle financial technology.

He said:

“As the industry continues to innovate, it is important for regulators to strike a balance between encouraging innovation and managing risk. Virtual currencies, such as Bitcoin, provide a good example.”

Curry said the agency has established a working group that will develop a framework to evaluate new innovative financial products and services.

“Our team is made up of representatives from agencies across the country, including policy experts, prosecutors, lawyers, etc.,” he said. “We are still in the early stages of exploration, so I can’t tell you exactly what we are doing yet.”

Notably, Curry acknowledged in his speech that financial technology is largely not developed by regulated entities, such as banks.

He said:

“There are a few reasons for this, but one of the things that I’m most concerned about is that I think it’s very difficult for new ideas to get regulatory approval.”

Curry also called on regulators to be open to looking at new ideas, rather than dismissing them or treating them as witchcraft.

“My bet is that there’s going to be a transformation of the traditional banking system from within, and I hope the OCC is prepared to deal with it,” he said.

The agency did not immediately respond to a request for comment.

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