Federal payments licensing push could make crypto introduction faster

Brian Brooks, Coinbase’s former chief legal officer and the current U.S. Comptroller of the Currency, is trying to do his best to consolidate licensing regulations for payment companies at the federal level in the US.

Federal licensing for payments firms that do not accept deposits could cause further mainstream adoption of virtual currencies by permitting crypto payments firms to obtain approval for wording around the country. The U.S.’s tries of federal and state regulations has interfered many virtual currency firms from setting up shop in the United States.

Though, industry experts foresee that many states will be against federal licensing, taking into account the dispute over the OCC’s fintech charter with the New York Department of Financial Services.

In an interview with Law360, Crowell & Moring partner Michelle Gitlitz mentioned the following:

“It would surprise me if the same thing didn’t happen again. I don’t see why a regulatory institution like the New York Department of Financial Services would take a different position with respect to a payment charter than they did with the fintech charter.”

At the end of the summer, John Ryan, chairman of the Conference of State Bank Supervisors (CSBS), posted the association opposition to federal payment licensing and accusing the OCC of “disregard[ing] the statutory limits of its authority.”

 “State regulators are opposed to this unconstitutional expansion of power.”

Despite this, the Office of the Comptroller of the Currency mentioned about the readiness to accept applications from payment companies for a federal banking charter.

The appointment of Brian Brooks as the chairman of OCC has been approved by the crypto sector.

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