Type to search

US Regulators Vow to Set Banks’ Crypto Rules Next Year

US banking regulators said on Tuesday they intend to clarify next year the role that traditional banks can legally play in the cryptocurrency sector.


The US Federal Reserve Board was among the regulators that outlined the cryptocurrency regulation project. Photo: Reuters

 

US banking regulators said on Tuesday they intend to clarify next year the role that traditional banks can legally play in the cryptocurrency market.

In a statement, regulators said they plan to make clear what sort of activities banks can engage in involving cryptocurrency, including holding it on their balance sheets, issuing stablecoins and holding crypto assets and facilitating crypto trading on behalf of customers, among other currently murky areas.

The joint statement from the US Federal Reserve, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency is an update on work done by an interagency “sprint” team convened earlier this year.

No details were offered but the agencies said the rapid growth of cryptocurrency presents “potential opportunities and risks” for traditional banks.

They said regulators want to provide “coordinated and timely” clarity to the institutions they monitor.

“The agencies have identified a number of areas where additional public clarity is warranted,” the agencies said.

“Throughout 2022, the agencies plan to provide greater clarity on whether certain activities related to crypto-assets conducted by banking organisations are legally permissible, and expectations for safety and soundness, consumer protection, and compliance with existing laws and regulations.”

Agency officials have been working on identifying risks facing banks engaging in crypto activity, as well as whether existing regulations must be updated to account for that activity.

 

  • Reuters

 


 

READ MORE:

China Planner Reaffirms Crypto Mining Bans: Securities Times

Apple Boss Tim Cook Joins Crypto Bandwagon: The Times

 

 

George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

logo

AF China Bond