WASHINGTON, D.C.—Phillip Basil, Director of Economic Growth and Financial Stability for Better Markets, issued the following statement in connection with Better Markets’ new Fact Sheet entitled “Crypto Banks Threaten Americans’ Savings and the Main Street Economy”: 

“Last week, the Office of the Comptroller of the Currency (OCC) finalized a recklessly weak set of rules to govern stablecoin issuers that—combined with other equally reckless actions of the federal banking agencies—prove the administration wants crypto companies to have all the benefits of banks without any of the protections that keep our banking system safe. This will only benefit the crypto industry and its army of lobbyists, who are all making huge sums of money for a product the American public never asked for. In fact, Americans remain very concerned about crypto banking risks.  

“This short-sighted, profit-seeking policymaking undermines our community banks, hurts economic growth, and unnecessarily brings the huge risks of crypto into our banking system, threatening widespread bank failures and bailouts. Regulators must be serious about financial stability and revisit their framework of rules to put in place safeguards that are strong enough to address the severe risks of crypto banks before all Americans pay the price.” 

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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.