Opinion: New crypto-regulation rules will leave small banks on the sidelines

Avanti cryptocurrency startup founder Caitlin Long called the Office of the Comptroller of the Currency’s (OCC) rules, which allow banks to issue stablecoins, a “double-edged sword.” According to Decrypt.

In her view, the new OCC provisions will give big banks an edge when dealing with digital assets.

“Corporations will quickly seize power and push out small banks and cryptocurrency firms,” Long said.

The expert suggested that state banks, unlike small financial institutions, would not need approval from federal regulators to use stablecoins.

Caitlin Long founded Avanti, a bank focused on providing regulated digital-asset services, in early 2020. In late October, Wyoming state authorities granted the startup official financial institution status.

On January 5, the OCC allowed banks to issue stablecoins. Many observers saw the news as a win for the industry over regulators.

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