The Federal Reserve, Federal Deposit Insurance coverage Company (or FDIC), and Workplace of the Comptroller of the Foreign money (OCC) have issued a joint statement asserting a plan to clarify the rules and laws round how banks can use cryptocurrencies over the following 12 months (via Bloomberg).
The businesses say they’re specializing in setting expectations for what banks can do when it comes to holding crypto, permitting prospects to receive crypto, issuing their very own stablecoins (or cryptocurrencies whose worth is tied to a fiat forex just like the US greenback), and taking crypto as collateral for loans and preserving it on their steadiness sheets. In accordance to the letter, the objective is to be sure that shoppers are protected and that banks act responsibly. The regulators additionally say it’s an try to be sure that the monetary trade isn’t used to launder ill-gotten forex, one thing the Treasury Division has been focusing on recently.
The OCC has already made moves in this direction — on Tuesday, the performing comptroller released a letter clarifying choices that the workplace had made all through 2020 and early 2021. Now, the letter says, banks may have to ask permission from regional regulators earlier than entering into sure crypto fields.
Beforehand, the Comptroller mentioned banks had been allowed to hold cryptocurrencies for customers in addition to assets being used to back stablecoins. Banks were also told they may use stablecoins and act as nodes on blockchain networks. Whereas monetary establishments will nonetheless give you the option to perform these actions, they’ll have to give you the option to show to regulators that they will accomplish that safely and responsibly.
These bulletins come as some crypto corporations have skirmished with regulators over what authorized classifications their merchandise fall beneath. Not too long ago, Coinbase canceled its Lend program after a public feud with the Securities and Exchange Commission over whether or not what it was promoting counted as securities (and would due to this fact fall beneath heavier authorized scrutiny). The Treasury has additionally proposed that giant cryptocurrency transfers be reported to the Internal Revenue Service, and has asked Congress to start regulating stablecoins.
US banking regulators are looking to clarify crypto rules in 2022 Source link US banking regulators are looking to clarify crypto rules in 2022