US banking regulators are working to clarify corrupt laws in 2022.
The Federal Reserve, the Federal Deposit Insurance Corporation (or FDIC), and the Office of the Comptroller of the Currency (OCC) have issued a joint statement announcing plans to clarify the rules and regulations. How banks can use cryptocurrency during the year (via Bloomberg).
Agencies say they are focusing on what banks can do when it comes to keeping cryptocurrencies, allowing consumers to get cryptocurrencies, issuing their own stable coins (or cryptocurrencies). Currency whose value is linked to a fiat currency such as the US dollar), and to take the crypto as collateral for loans and keep it in your balance sheet. According to the letter, the aim is to ensure that consumers are safe and banks act responsibly. Regulators also say it is an attempt to ensure that the financial industry is not used to launder illicit currency, which the Treasury Department has recently been focusing on.
The OCC has already taken steps in this direction – on Tuesday, the Acting Controller issued a letter outlining the decisions the office had made in 2020 and early 2021. Now, the letter states, banks must seek permission from regional regulators before entering. Specific crypto fields.
Earlier, the comptroller said banks were allowed to keep cryptocurrencies for consumers, while assets were being used to back up stable coins. Banks were also told that they could use stablecoins and act as nodes on blockchain networks. Although financial institutions will still be able to carry out these activities, they will have to prove to regulators that they can do so safely and responsibly.
The announcements come as some corrupt companies have clashed with regulators over what legal classification their products fall into. Recently, Coinbase canceled its loan program after a public dispute with the Securities and Exchange Commission over whether what it was selling would be treated as securities (and therefore due to heavy legal scrutiny). Will come under The Treasury has also suggested that the transfer of large cryptocurrencies be reported to the Internal Revenue Service, and has asked Congress to begin regulating stable coins.