In an opinion piece published in the Financial Times on Tuesday, Acting Comptroller of the Currency Brian Brooks put forward the need to reconfigure banking regulations for an age of algorithms.
Brooks, who currently leads the Treasury’s Office of the Comptroller of the Currency, compared existing banking regulations to traffic laws. He further used the analogy of self-driving cars for new steps in decentralized finance. “Just as the original rules of the road protected us from other drivers, so our current bank regulations exist mainly to prevent human failings,” wrote Brooks.
The overall tone of Brook’s letter is confident that banking regulators are capable of retooling, of learning how to appraise algorithms for bias and fraud — which he says will ultimately prove simpler than trying to root those same issues out of human bankers. Brooks concludes:
“Could we usher in a future where we eliminate error, stop discrimination, and achieve universal access for all? Optimists like me