Crypto Gloss

Brian Brooks

Brian Brooks is an American attorney and financial regulator who served as Acting Comptroller of the Currency from May 2020 to January 2021, issuing three landmark interpretive letters that established for the first time that US national banks could legally hold cryptocurrency, serve as stablecoin reserve banks, and use stablecoins for payment settlement — making him the most consequential pro-crypto US bank regulator in history before departing to serve as CEO of Binance US and later Bitfury.

Background

Education: MBA and JD from University of Chicago; Duke University undergraduate.

Career before OCC:

  • Partner at O’Melveny & Myers (financial services practice)
  • Fannie Mae General Counsel and Chief Legal Officer (2014–2018)
  • Chief Legal Officer at Coinbase (2018–2020)

The Coinbase CLO role is critical context: Brooks joined the OCC directly from America’s largest crypto exchange. This background shaped his views on the regulatory gaps preventing mainstream bank engagement with digital assets.

The OCC Under Brooks: Landmark Crypto Guidance

Brooks served as Acting Comptroller of the Currency from May 2020 to January 2021 under Trump, and briefly returned in early 2021 before resigning.

Interpretive Letter 1170 (July 2020) — Custody Services

What it said: National banks may provide cryptocurrency custodial services for customers.

Why it mattered: Before this letter, it was legally unclear whether a national bank (JPMorgan, Wells Fargo) could hold Bitcoin in custody for customers. This letter definitively confirmed it was permissible — removing legal uncertainty that had frozen bank engagement.

Impact: Enabled BNY Mellon, State Street, and other major banks to begin launching institutional crypto custody services.

Interpretive Letter 1172 (September 2020) — Stablecoin Reserves

What it said: National banks may hold stablecoin reserves in USD — a national bank can serve as reserve bank for a USD-backed stablecoin issuer.

Why it mattered: Established the legal basis for Circle (USDC issuer) and other stablecoin issuers to partner with national banks for reserve management — a key step toward institutional-grade stablecoin infrastructure.

Interpretive Letter 1174 (January 2021) — Stablecoin for Payment Settlement

What it said: National banks and federal savings associations may use stablecoins as payment conduits — conducting payment activities using stablecoins on distributed ledger networks.

Why it mattered: Arguably the most significant of the three — it said banks could use stablecoins (not just hold them) as actual settlement infrastructure. This was the regulatory green light for bank-issued stablecoins.

Special Purpose National Bank Charters

Brooks also initiated a program for “special purpose national bank charters” allowing crypto companies to apply for national bank status without FDIC insurance. Kraken became the first US crypto company to receive a state bank charter (Wyoming SPDI) partially inspired by this framework.

Post-OCC Career

Binance US CEO (2021): After leaving the OCC, Brooks became CEO of Binance US — the US arm of the world’s largest crypto exchange. The role lasted approximately 3 months before Brooks resigned, citing “strategic differences.” The short tenure drew regulatory scrutiny about the revolving door between regulation and industry.

Bitfury Group CEO (2021–2022): Brooks became CEO of Bitfury — one of the world’s largest Bitcoin mining hardware and software companies.

Subsequent: Brooks remained active in Congressional testimony on crypto regulatory clarity and advisory roles.

Regulatory Philosophy

On stablecoins: Stablecoins should be regulated by the OCC (as potential bank products) rather than the SEC (as securities) — closer to “bank liabilities” than “investment contracts.”

On the Howey Test: Disagreed with the SEC’s expansive Howey Test application to classify crypto tokens as securities — argued “function tokens” with live utility networks are categorically different from investment contracts.

On DeFi: Expressed genuine enthusiasm for DeFi as financial inclusion technology — citing access to credit and banking for the unbanked.

Brooks vs. Gensler: Brooks’ philosophy is the antithesis of Gary Gensler’s approach — OCC/CFTC leadership vs SEC jurisdiction; stablecoins as bank products vs securities; regulatory rulemaking vs enforcement-by-lawsuit.

History

  • 2018–2020 — Serves as Chief Legal Officer at Coinbase
  • May 2020 — Appointed Acting Comptroller of the Currency
  • July 2020 — Issues Interpretive Letter 1170: national banks may hold crypto in custody
  • September 2020 — Issues Interpretive Letter 1172: national banks may hold stablecoin reserves
  • January 2021 — Issues Interpretive Letter 1174: banks may use stablecoins for payments; Biden takes office; Brooks leaves the OCC
  • Mid 2021 — Named CEO of Binance US; resigns after ~3 months
  • Late 2021 — Becomes CEO of Bitfury Group
  • 2022–present — Testifies before Congress on digital asset regulation; remains active in crypto policy discussions

Common Misconceptions

  • “Brian Brooks was the OCC’s Comptroller of the Currency.” — He was Acting Comptroller — a temporary designation, not the Senate-confirmed permanent role. His tenure lasted roughly 8 months before the Biden administration replaced him.
  • “His interpretive letters were reversed by the Biden administration.” — Acting Comptroller Hsu and subsequent OCC leadership did not rescind the letters outright, though they issued more cautious guidance. The legal framework Brooks established remained largely in place.

Social Media Sentiment

  • r/CryptoCurrency: Brooks is referenced as a positive regulatory figure in historical crypto banking discussions; his OCC work is cited as the model for what pro-innovation regulation looks like.
  • X/Twitter: Active in crypto policy debates; cited by industry advocates for his OCC framework and his testimony on regulatory clarity; his Binance US tenure generated significant news coverage.
  • Discord: Referenced in regulatory discussion channels; the interpretive letters are commonly cited by crypto banking advocates.

Last updated: 2026-04

Related Terms

See Also

  • Caitlin Long — fellow pro-crypto regulatory pioneer who built Wyoming’s SPDI framework around the same period
  • Gary Gensler — the SEC chair whose approach represented the opposing regulatory philosophy to Brooks’s
  • Coinbase — the exchange where Brooks served as CLO before joining the OCC

Sources