The President’s Bold Move
In a surprising and forward-thinking move, President Donald Trump has nominated Jonathan Gould, a former executive in the cryptocurrency world, to lead the Office of the Comptroller of the Currency (OCC). The OCC is the powerful US regulatory body responsible for overseeing national banks like JPMorgan Chase and Bank of America. If confirmed by the Senate, Gould will serve a five-year term as the Comptroller, a role crucial in ensuring the stability and safety of the US banking system.
Who Is Jonathan Gould?
Jonathan Gould’s background is anything but conventional for a top US banking regulator. He is a seasoned legal and financial professional, with a fascinating career that spans both traditional finance and the crypto world. Gould previously served as the senior deputy comptroller and chief counsel at the OCC under Trump’s first administration, from 2018 to 2021. But what makes him especially notable now is his time spent in the blockchain space.
Gould was the Chief Legal Officer at Bitfury, a leading blockchain infrastructure company, where he gained valuable insights into the fast-evolving world of crypto. He’s also a partner at the prestigious law firm Jones Day and has a solid background at BlackRock, where he worked as a director from 2014 to 2018. This blend of expertise in both traditional finance and blockchain positions him uniquely to steer the OCC into a new era.
The OCC: A Powerhouse in US Banking
The OCC is responsible for regulating and supervising national banks in the United States. Its main mission is to ensure that the banking system remains safe, sound, and accessible to all. This means keeping an eye on everything from the big banking giants to the smaller institutions, making sure they adhere to regulatory guidelines, and maintaining the overall stability of the US financial system.
But with the rapid rise of digital assets and fintech, the OCC’s role has become more complicated. Enter Jonathan Gould, whose knowledge of the crypto space could signal a shift in how regulators approach digital currencies and blockchain-based innovations.
Crypto Community Cheers Gould’s Nomination
Gould’s nomination is being met with widespread praise from within the cryptocurrency and fintech industries. Kristin Smith, CEO of the Blockchain Association, a leading crypto advocacy group, expressed strong support for Gould’s appointment, calling him an “excellent choice” for the role. Smith highlighted Gould’s extensive experience in the blockchain space as key to effectively leading the OCC into the future.
Even Avichal Garg, co-founder of the investment firm Electric Capital, chimed in on social media, calling the nomination a “very positive development” for the crypto and fintech industries. Garg noted that Gould is a strong advocate for fair banking access for crypto firms and has voiced his opposition to what’s been called “Operation Chokepoint 2.0” — an initiative some see as an effort to limit crypto firms’ access to traditional financial services.
A Fresh Perspective on Regulation
Gould’s background in both traditional finance and the crypto industry gives him a unique perspective on how to regulate the digital asset space without stifling innovation. In a March 2023 testimony before the House Financial Services Committee, Gould warned that regulatory actions at the time were having a “chilling effect” on banks’ willingness to engage with crypto-related businesses. He suggested that the regulatory environment could discourage banks from providing services to digital asset companies, potentially stalling the growth of the sector.
A Potential Overhaul of US Financial Regulation?
Gould’s nomination also comes at a time when there is growing discussion around the future of US financial regulators. There have been rumors that Trump’s administration is exploring the possibility of merging the Federal Deposit Insurance Corporation (FDIC) with the OCC or even shifting some of the FDIC’s regulatory responsibilities to the OCC. Such a move could have significant implications for how both traditional banks and emerging fintech companies are supervised.
A Trend of Crypto-Friendly Nominees
Gould is not the only nominee with strong ties to the crypto world. Brian Quintenz, the former head of policy at Andreessen Horowitz’s crypto arm, was nominated by Trump to lead the Commodity Futures Trading Commission (CFTC). If confirmed, Quintenz is expected to push a pro-crypto agenda at the CFTC, potentially positioning the agency as the primary regulator for crypto, replacing the Securities and Exchange Commission (SEC), which has taken a more cautious approach to digital assets.
Additionally, Trump’s nomination of John Hurley for the Treasury’s undersecretary for terrorism and financial crimes could also have implications for crypto. Hurley’s experience with Bitcoin investments suggests he may take a balanced approach to regulating digital currencies, focusing on ensuring compliance with anti-money laundering laws while fostering innovation.
What’s Next for Crypto and Banking?
Gould’s nomination could be the start of a new regulatory era that strikes a balance between protecting consumers and fostering innovation. As the crypto world continues to expand, it’s clear that regulatory bodies like the OCC will need to adapt quickly to keep pace with technological advancements.
For crypto firms and fintech innovators, Gould’s potential confirmation could signal more clarity and support from the US government, paving the way for better access to traditional banking services and a more stable regulatory environment. However, it’s important to remember that with power comes responsibility. Gould and other regulators will have to navigate the fine line between promoting innovation and ensuring that the financial system remains safe, secure, and free from abuse.
The future of crypto regulation in the US is still being written, but with leaders like Jonathan Gould at the helm, it’s sure to be an exciting chapter.
