Brian Brooks occupies a unique position in crypto history: he is the most senior US bank regulator to have not only provided significant regulatory clarity favorable to cryptocurrency but to have immediately followed that regulatory work with direct crypto industry leadership. As Acting Comptroller of the Currency under both the Trump and Biden administrations, Brooks issued the most pro-crypto bank regulation in US history in a period of 12 months. He then left the OCC to join Binance US as CEO — a transition that drew significant regulatory scrutiny and ultimately lasted only 3 months. His story illuminates the “revolving door” dynamic between US financial regulation and the crypto industry, and the specific regulatory framework he established at the OCC continues to shape US bank engagement with digital assets.
Background
Education: MBA and JD from University of Chicago; Duke University undergraduate
Career before OCC:
- Partner at O’Melveny & Myers (major law firm, 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
Brian Brooks served as Acting Comptroller of the Currency from May 2020 to January 2021 (Trump administration), and briefly returned in March 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 unclear whether a national bank (JPMorgan, Wells Fargo, etc.) could legally hold Bitcoin in custody on behalf of customers. The OCC’s letter definitively confirmed this was permissible — removing legal uncertainty that had frozen bank engagement with crypto custody.
Impact: Enabled BNY Mellon, State Street, and other major banks to begin launching institutional crypto custody services.
Interpretive Letter 1172 (September 2020): Stablecoin Infrastructure
What it said: National banks may hold stablecoin reserves in USD — i.e., a national bank can serve as the 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 accept them) as actual settlement infrastructure. This was the regulatory green light for bank-issued stablecoins and bank participation in stablecoin payments.
Conditional Bank Charter for Crypto Firms
Brooks also initiated a program for “special purpose national bank charters” — allowing crypto companies to apply for national bank status without FDIC insurance (a concept called a “payments charter”). Kraken became the first US crypto company to receive a state bank charter (Wyoming Special Purpose Depository Institution) partially inspired by this framework.
The “Self-Driving Banks” Vision
Brooks popularized the phrase “self-driving banks” — his vision of financial institutions powered by smart contracts and algorithms rather than human discretionary judgment:
The argument:
- Current banks discriminate against small businesses and underserved communities through subjective lending criteria
- DeFi protocols lend algorithmically based purely on collateral — no discrimination possible
- The future of banking = smart contract-based credit, custody, and payment systems operating 24/7 without human gatekeepers
This framing was influential in crypto regulatory discourse and positioned Brooks as a genuine believer in DeFi rather than a cynical revolving door operator.
Post-OCC Career: Industry Roles
Binance US CEO (August–September 2021)
Three weeks after leaving the OCC’s acting head position, Brooks joined Binance US as CEO. He resigned after approximately 3 months, citing disagreements with Binance’s global leadership over regulatory strategy.
Significance: Brooks’ departure from Binance US foreshadowed the DOJ/CFTC/SEC investigation into Binance that eventually resulted in Changpeng Zhao’s 2023 guilty plea. Brooks has stated he believed Binance’s compliance commitments were insufficient and resigned rather than implement them.
Bitfury Group CEO (2021–2022)
After Binance US, Brooks became CEO of Bitfury — one of the world’s largest Bitcoin mining hardware and software companies, also providing blockchain analytics product Blockseer.
Subsequent Roles
Brooks remained active in crypto advisory and board roles and has testified multiple times before Congress on the need for regulatory clarity.
Brooks’s Regulatory Philosophy
Key Positions
On stablecoin regulation: Brooks argues stablecoins should be regulated by the OCC (as potential bank products) rather than the SEC (as securities) — the framing that stablecoins are closer to “bank liabilities” than “investment contracts.”
On the Howey Test: Disagreed with SEC’s expansive use of the Howey Test to classify most 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 services for the unbanked as the primary social benefit.
On clarity vs enforcement: Argued for prospective regulatory rulemaking rather than “regulation by enforcement,” which he characterized as unfair to good-faith actors who couldn’t know what the rules were before being sued.
Contrast With Gensler (SEC)
Brooks’ regulatory philosophy is the antithesis of Gary Gensler’s SEC approach:
- Brooks: Most crypto is not securities; OCC and CFTC should lead; stablecoins are bank products; DeFi needs rules not lawsuits
- Gensler: Most crypto (except BTC) are securities; SEC has jurisdiction; existing securities laws apply; DeFi is not exempt
This tension defined US crypto regulation from 2021–2024.
Legacy and Impact
Brian Brooks’ OCC tenure produced more concrete, positive regulatory clarity for crypto than any comparable period in US regulatory history:
- Three interpretive letters in 12 months; each expanding bank involvement in crypto
- Articulated the “self-driving bank” vision that influenced subsequent regulatory discourse
- Created the legal basis for BNY Mellon, State Street, and others to offer crypto custody
- Enabled USDC’s institutional partnerships with US-chartered banks
His post-OCC career is complicated: Binance US tenure ended in dispute; Bitfury is less prominent than he may have anticipated. But his OCC work is cited by crypto advocates as the template for what pro-innovation bank regulation looks like.
Research
Brooks, B.P. (2021). Testimony before the Senate Banking Committee: Digital Assets and the Future of Finance. US Senate Committee on Banking, Housing, and Urban Affairs.
OCC Interpretive Letter 1170. (2020). OCC Authority to Provide Cryptocurrency Custody Services. US Department of the Treasury, Office of the Comptroller of the Currency.
Zetzsche, D.A., Buckley, R.P., Arner, D.W., & Barberis, J.N. (2017). Regulating a Revolution: From Regulatory Sandboxes to Smart Regulation. Fordham Journal of Corporate and Financial Law, 23(1).
Hockett, R.C., & Omarova, S.T. (2017). The Finance Franchise. Cornell Law Review, 102(5).
Werbach, K. (2018). The Blockchain and the New Architecture of Trust. MIT Press.