Brian Brooks, the current controller of the US foreign exchange market, is optimistic about the development of the DeFi and blockchain market. He believes regulators will find it easier to work with algorithms than with bankers. He added that he believes that DeFi technology can root out certain prejudices and eliminate all sorts of fraud we see today in the traditional banking market.
Brian Brooks and DeFi
In an opinion published on Tuesday in the Financial Times, acting currency controller Brian Brooks presented the need “Reconfiguration of banking regulations to fit the age of algorithms.”
Brooks, who currently heads the Revenue Office of the Currency Controller, compared the existing banking laws with those relating to traffic. He then used the autonomous car analogy to explain what changes are taking place in the markets.
– Just as the original road laws protected us from other drivers, our current banking laws are primarily designed to prevent human failure – Brooks said.
Overall, he believes that banking regulators can change their tools, learn how to use algorithms to fight fraud, which he says will ultimately prove to be simpler than trying to eradicate the same problems in cooperation with “human” bankers .
– Can we usher in a future where we eliminate errors, stop discrimination and ensure universal access for all? Optimists like me think so. How different would banking in the United States today be if regulators, bankers and policymakers were as bold as car makers 10 years ago? – added.
Former Coinbase expert
Brooks is the former leader of the Coinbase legal team. From the beginning, he was the main advocate of the integration of cryptographic technology with the national payment system. Under his supervision, the office he controls has recently authorized, for example, domestic banks to launch stablecoin-based payments and nodes.
Brooks also advocated the introduction of a national card for non-custodians specifically designed to allow fintech companies to obtain national licenses, rather than having to undergo verification in every state in the US.