Currency Secretary Discusses Crypto Banking

At a recent Coindesk event in Washington, Jonathan Gould, the Secretary of Currency, addressed the role of banks in legally permitted cryptocurrency activities. He indicated that many banks are eager to participate, emphasizing that these engagements should not be dismissed outright.

Gould pointed out that the technologies and processes inherent to cryptocurrency are quite aligned with traditional financial intermediary services. It’s crucial, he noted, to work closely with those interested in these activities, but in a manner that is safe and trustworthy. “This is our duty as a supervisor and regulatory authority,” he remarked, ensuring that legally acceptable practices are encouraged.

During the event, there were expressions of concern regarding the so-called “debanking” phenomenon affecting the crypto community. Gould acknowledged receiving similar complaints just a week prior. “The debanking is real,” he stated, highlighting that it’s an undeniable issue.

The Office of the Secretary of Currency, in a recent announcement, outlined steps to prevent banks from engaging in what they term “illegal banking practices.” They’ve reiterated the need for banks to uphold their responsibilities, especially in terms of community reinvestment and the safeguarding of client financial records.

Gould also discussed the OCC’s efforts to combat the misuse of the financial system, stating that they aim to eliminate banking activities that discriminate against customers for various reasons, including political or religious beliefs. In a landscape marked by uncertainty, these statements echo a broader push towards inclusivity in banking practices.

Before his current role, Gould served under the Trump administration, where he focused on digital asset regulation, particularly for banks and non-bank digital startups seeking charters.