The President of the United States, Joe Biden announced plans to hire a cryptocurrency critic to head the Office of the Comptroller of the Currency.
Saule Omarova, is a law professor widely recognized as an anti-big-bank and anti-cryptocurrency believer. Omarova’s nomination has raised concerns in both financial and political circles because she might over-regulate the cryptocurrency niche into oblivion.
Non-supporters of the nomination
In a tweet sent on Tuesday, Senator Ted Cruz is the latest crypto supporter to speak against the nomination. He claimed that Omarova’s decisions may change the future of the crypto industry. According to Cruz, cryptocurrency will face ground-breaking government regulations under Omarova. This nomination should be averted.
Several banking associations and large banks are also not in favor of the nomination. In fact, the American Bankers Association is debating whether it should publicly contest Biden’s choice. Rob Nichols is the CEO of the American Bankers Association. He raised concerns about Omarova’s ideas and how they could restructure the country’s banking policies.
Pat Toomey, Republican of the Senate Banking Committee commented that he had serious reservations about Biden’s nomination for OCC because of her extreme leftist notions.
The CEO and president of the Independent Community Bankers stated that if Omarova takes office, she will displace community-based banking and limit economic growth in small communities.
What is the OCC?
It regulates banking giants in the United States. Examples of these include JP Morgan, Goldman Sachs, and Citi Group. It also includes parts of the cryptocurrency industry.
In her previous statements, Omarova has said that she planned to end traditional ways of banking and wanted to implement stricter rules. She further added that cryptocurrencies are only benefiting the current dysfunctional banking system in America.
The OCC has changes from being a crypto-forward firm into an agency that has changed directions. The previous head of Coinbase’s team, Brian Brooks, started at the OCC in 2020. Under his leadership, he set the path for legislation that would enable banks to gain custody crypto.