US lawmakers urge ban on banks holding stablecoin collateral

The Biden administration should withdraw the Office of the Comptroller of the Currency (OCC) decisions, within the U.S. Treasury, regarding cryptocurrencies and stablecoins. The statement was issued by U.S. Representative Maxine Waters, The Block reports.

In July 2020, the U.S. regulator allowed national banks and federal savings associations to provide cryptocurrency custody services.

In September, the OCC made a similar decision in relation to stablecoins, pegged to fiat currencies at a 1:1 ratio.

In Waters’ view, U.S. authorities should revise policy toward digital assets. She did not justify a position on revoking authorisations, but indirectly hinted to Biden at the possibility of replacing OCC leadership.

Earlier the congresswoman repeatedly expressed concern about the Diem Association project (formerly Libra Association). In June 2019, Waters urged Facebook to suspend development of the digital currency, and two months later presented a plan of work for its further study.

In November, six members of the U.S. Congress criticised the head of the OCC, Brian Brooks for “excessive attention” to cryptocurrency regulation and stablecoin issuance.

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