US Regulatory Landscape Shifts in Favor of Crypto: OCC and CFPB

The crypto industry is likely to benefit from a shift in regulatory stance, with the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau potentially falling in line with its digital assets policy goals. The appointment of Rodney Hood, a crypto-friendly former chairman of the US credit-union watchdog, as the new acting chief at the OCC, is expected to mitigate the sector's strained relationship with US banking. Hood has previously stated that cryptocurrency needs to be part of the financial system, and his appointment may lead to a reevaluation of the OCC's 2021 guidance that contributed to the rift between crypto firms and US banking services. Meanwhile, the removal of the Securities and Exchange Commission's crypto accounting policy and the potential overhaul of the FDIC's crypto approach under Acting Chairman Travis Hill may further reduce banking impediments for digital assets. At the Consumer Financial Protection Bureau, the agency's existence is under threat from Republicans, and its operations have been crippled by the Trump administration. The agency's previous efforts to regulate stablecoins and protect consumers harmed by crypto firms have been put on hold, and its proposal for stablecoin regulation is unlikely to move forward. The situation has drawn resistance from Democratic lawmakers, who intend to hold a rally at the CFPB and are working on a bipartisan agreement on stablecoins that can pass muster in the Senate.