US Regulators Are Exploring A Policy For Banks To Handle Cryptocurrencies
Jelena McWilliams, president of the Federal Deposit Insurance Corporation, or FDIC, has said that the agency is working with other regulators in the United States to explore under what circumstances banks can engage in activities involving crypto assets.
In a speech at the Money20 / 20 Fintech Conference on Monday, McWilliams said that the FDIC, in coordination with the Federal Reserve and the Office of the Comptroller of the Currency, seeks to provide regulatory clarity for banks that handle crypto assets, including stablecoins. The president said the FDIC plans to issue “a series of policy statements” in the coming months on guidance for banks.
According to McWilliams, stablecoins have many potential benefits for consumers, such as faster, cheaper and more efficient payments. However, he stated that if one or more became a dominant form of payment in the United States or around the world, there could be significant effects on the financial stability of that country, as the funds are no longer held in banks. insured.
“To realize the potential benefits stablecoins offer, while taking potential risks into account, stablecoins must be subject to well-tailored government oversight,” said the FDIC president. “That oversight should be based on the basis that stablecoins issued from outside the banking sector are actually backed 1: 1 by safe and highly liquid assets.”
McWilliams’ comments came on the same day that Bloomberg reported that many US regulators had agreed that the Securities and Exchange Commission would lead the nation’s efforts to regulate stablecoins. The Treasury Department said in July that it was exploring creating a type of bank charter for issuers of stablecoins.
The apparent lack of regulatory clarity regarding digital assets in the United States has been a problem for many companies who fear legal action or other forms of government backlash. Some lawmakers have introduced legislation for US regulators to work with participants in the crypto space to better define what is expected of them.