US banking regulators to clarify banks' crypto role in 2022
U.S. banking regulators plan to clarify what role traditional banks can legally play in the cryptocurrency market in 2022.
The regulators said in a statement that they plan to clarify what types of activities banks can engage in to incorporate cryptocurrency, including holding them on their balance sheets, issuing stablecoins and holding crypto assets, and facilitating crypto trading on behalf of customers.
The joint statement from the Federal Reserve, the Federal Deposit Insurance Agency, and the Office of the Currency Controller provided an update on the work done by an interagency "sprint" team meeting earlier this year.
While the agencies did not provide details, he 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.
Agencies have identified a number of areas where additional public clarity is guaranteed. They also plan to provide greater clarity on whether certain crypto-asset-related activities conducted by banking institutions are legally permissible by 2022, and the expectations for security and soundness, consumer protection, and compliance with current laws and regulations.
Agency officials are trying to determine the risks faced by banks engaged in crypto activity, as well as determining whether existing regulations should be updated to account for this activity.