Brian Brooks Steps Down as OCC Chief: What’s Next for U.S. Banking?

Big Changes at the OCC

The U.S. Office of the Comptroller of the Currency (OCC) has seen a significant shift as Brian P. Brooks officially announced his resignation, effective January 14, 2021. His brief tenure as head infused the agency with a dose of energy and innovative thinking, but as we all know, nothing lasts forever. Brook’s shoes may be tough to fill, but that’s where Blake Paulson steps in as Acting Comptroller.

Who is Blake Paulson?

Blake Paulson, previously the Chief Operating Officer at the OCC since June 2020, now takes the reins. With a background steeped in traditional banking—think of him as the “bank examiner’s bank examiner”—Paulson has an extensive understanding of the ins and outs of around 1,100 national banks and federal savings associations. He’s essentially the person you want behind the wheel if you’re driving down the highway of capital.

Brian Brooks’ Legacy

Let’s take a moment to appreciate what Brooks accomplished in his short-lived power seat. Not only is he a former head of legal at a well-known cryptocurrency exchange, Coinbase, but he also brought a fresh perspective on how traditional banking could align with the digital future. On January 12, he expressed how decentralized finance (DeFi) could be a game-changer for bias and fraud that exists in conventional banking, pushing for regulations that align with today’s tech-savvy consumers.

The Political Tug-of-War

Brooks’ nomination for a full five-year term faced a few headwinds. Former President Donald Trump nominated him in November, but the Democrats kidded themselves about the idea that President-elect Joe Biden should steer this ship. So, in a classic political dance, Brooks chose to step down before the music got too wild.

Looking Ahead: What Will Happen Next?

As Brooks rides off into the sunset, questions loom over how Paulson will approach crypto assets. Will he share Brooks’ progressive outlook on digital banking, or will he shift back to old-school practices? One thing is for certain—the OCC will continue to have its work cut out as it supervises nearly 1,200 national banks and accounts for about 70% of all banking operations in the U.S.