President Joe Biden’s nomination for Comptroller of the Currency, Saule Omarova, was allegedly rejected by a group of five Democratic senators (OCC).
Senators Jon Tester, Mark Warner, and Kyrsten Sinema, all members of the Senate Banking Committee, initially opposed Omarova’s appointment as a bank regulator. As reported by Axios, he was on the phone with panel chairman Sen. Sherrod Brown. Senators John Hickenlooper and Mark Kelly joined the opposition.
Omarova, who formerly served as Special Advisor for Regulatory Policy to the Under Secretary of the Treasury for Domestic Finance, received a note for her anti-crypto beliefs. Because of the opposition of five Democrats and all Republicans, the White House contender now needs every other Democratic candidate to vote in favour of her nomination.
On Nov. 18, Senators questioned Omarova about her candidacy, including Georgia Senator John Ossoff, who had particular concerns for Omarova concerning cryptocurrencies. Her remarks acknowledged some of the benefits of cryptocurrencies in financial markets, but she emphasised the risk of cryptocurrency undermining the US dollar, which the Comptroller of the Currency is responsible for regulating.
Two possibilities to choose from
There are two possibilities for what occurs next. Either the Biden administration can persuade Democratic senators who oppose Omarova’s nomination to alter their minds. Or the administration will nominate a new nominee for Senate confirmation.
Senator Pat Toomey pressed Omarova about her missing Marxism thesis in October, while Michael J. Hsu, the acting Comptroller of the Currency, singled out Tether and Binance as hazardous blockchain participants in early November.
Sherrod Brown, the chairman of the Senate Committee on Banking, Housing, and Urban Affairs, has issued notifications requiring crypto businesses to submit information on consumer and investor protection on stablecoins, ratcheting up the regulatory pressure.
Brown’s notification sent to Coinbase, Gemini, Paxos, TrustToken, Binance.US, Circle, Centre, and Tether, as previously reported. Information about acquiring, exchanging, and minting stablecoins will need to be shared across crypto companies.
The companies also asked to disclose the quantity of tokens in circulation. As well as how frequently customers trade them for US cash. Investors “could not comprehend the intricacy and unique characteristics and terms of each stablecoin”, according to the senator.
“I’m concerned about the non-standardized conditions that apply to the redemption of certain stablecoins. How those terms differ from traditional assets, and how those terms may not be consistent across digital asset trading platforms.”