US Banking Regulators Look to Clarify Crypto Rules 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 a plan to clarify rules and regulations on how banks will use cryptocurrency over the next year (via Bloomberg).

The agencies say they are focusing on setting expectations for what banks can do when it comes to holding cryptocurrencies, allowing customers to obtain cryptocurrencies, issuing their own stablecoins (or cryptocurrencies whose value is tied to a fiat currency like the US dollar), and taking cryptocurrency as collateral for loans and holding them in their balance sheets. According to the letter, the goal is to ensure that consumers are protected and that banks act responsibly. Regulators also say it is an attempt to ensure that the financial industry is not used to launder illicit currency, which is the order of the Treasury Recently Focused.

OCC . has Already made moves in this direction – On Tuesday, the Acting Auditor letter issued To explain decisions the bureau made throughout 2020 and early 2021. Now, the letter says, banks will have to seek permission from regional regulators before entering into certain crypto domains.

Previously, the comptroller said that banks were allowed to do so Keep cryptocurrency for customers Beside Assets used to support stablecoins. Banks was also said They can use stablecoins and They act as nodes on blockchain networks. While financial institutions will still be able to carry out these activities, they must be able to demonstrate to regulators that they can do so safely and responsibly.

The announcements come as some cryptocurrency companies are squabbling with regulators over the legal classifications their products fall under. Recently, Coinbase Canceled her loan program after, after Public dispute with the Securities and Exchange Commission about whether what was being sold counted as securities (and would therefore be subject to closer legal scrutiny). The Treasury Department has also proposed conducting large cryptocurrency transfers It is reported to the Internal Revenue Service, and has Congress asked to start regulating stablecoins.

Write a Comment

Your email address will not be published. Required fields are marked *