In a series of tweets that may be considered his farewell remarks, the former Acting Comptroller of the Currency, Brian Brooks, has dubbed cryptocurrencies “scary but necessary.”
Brooks started his exposition by defining the role of governments in any society. According to him, governments are meant to setup frameworks that allow individuals to pursue their version of happiness.
Government should *expand* freedom, not constrain it.
Ironically, governments do not feel this way. Rather than embrace change, Brooks asserts that “institutions decide people’s ideas or economic choices are wrong and then try to suppress those ideas or choices.” The former head was arguably pointing fingers at stringent regulations from regulatory bodies.
That being said, Brooks believes that cryptocurrencies, including DeFi and stablecoins, are here to stay. They are “scary but necessary” if the U.S. wants to maintain its lead and succeed in an evolving financial landscape.
Before helming the Office of the Comptroller of the Currency (OCC) in May 2020, Brooks was the former Chief Legal Officer at Coinbase. His prior experience earned him a reputation for embracing financial innovation. Recently, the agency under his leadership announced that US banks could now use public blockchains and stablecoins to execute payments and other bank-permissible functions.
In an economy where the Federal Reserve keeps printing more money, crypto’s protection against expansionist monetary policy makes it a perfect alternative.
Although Brooks was supposed to serve for five years, his chances for nomination are slim following the exit of Donald Trump. Blake Paulson is now serving as the new Acting Comptroller of the Currency until a replacement is nominated.