Tuesday, August 16, 2022

U.S. banking regulators reveal crypto guidelines may arrive by 2022.

The Takeaway:

U.S banking regulators revealed that they intend to publish guidance for banks on how to handle stablecoins and the custody of digital assets in 2022.

Three U.S. banking regulators have published a joint statement on the state of digital currency regulations in the country. The three revealed that they intend to publish guidance for banks on how to handle stablecoins and the custody of digital assets in 2022 in a long-term regulation strategy after the policy sprints of earlier this year.

 

More banks seek clarity on cryptocurrency laws. 

The statement was from the Federal Reserve, the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC). These three regulators oversee the American banking industry. The banking regulators were forced into policy sprints earlier this year as more banks sought clarity on digital currency involvement. These sprints focused on defining the vocabulary for the sector, identifying and assessing key risks, and analyzing how current regulations apply to digital currencies. Crypto custody, facilitation of digital asset trading, and lending collateralized by digital assets and stablecoins were among the activities on which the regulators offered some clarity.

 

Banking regulators will continue to monitor the industry and address other issues as they emerge.

This preliminary work has given the three regulators a roadmap on essential issues they must address in 2022. It includes crypto custody and safekeeping, ancillary custody services such as staking, issuance, and distribution of stablecoins and digital asset loans. “The agencies also will evaluate the application of bank capital and liquidity standards to crypto assets for activities involving U.S. banking organizations and will continue to engage with the Basel Committee on Banking Supervision on its consultative process in this area,” according to the statement. The three banking regulators said they would continue to monitor the fast-evolving industry and address other issues as they emerge. In addition, they would engage with other relevant authorities and stakeholders as appropriate.

Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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