Brian Brooks: Antique Regulation Hinders DeFi Development


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Brian Brooks, Director of the Office of the Comptroller of the Currency of the United States (OCC), has again made a call for the development of modern regulation of cryptocurrencies and banks.

Brooks stressed that the current “antique” rules are hampering the development of both the decentralized finance (DeFi) industry and the creation of modern banks without physical branches. In addition, he noted that it is necessary to monitor technology, not people:

“Now we’re talking about regulating banks, but we’re really regulating bankers.”

Currently, OCC can only issue banking licenses to individuals. That is, a decentralized open source project cannot claim such a license. And these “antique rules”, according to Brooks, need to be changed.

OCC can regulate such a “software bank” – for this it is necessary to train employees to view and test algorithms for compliance with the requirements of the regulator.

The emergence of the DeFi industry heralds new opportunities and risks, Brooks said. But without a clear and clear position of the regulators, the industry runs the risk of getting bogged down in a “patchwork quilt of conflicting rules” and stalled in development.

Recall that in early January, the OCC allowed American banks and federal savings associations to use open blockchains and stablecoins for payments.

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