A top bank regulator has said that US regulators are exploring ways to develop better guidelines for banks and their customers to hold crypto assets.
Federal Deposit Insurance Corporation (FDIC) Chair Jelena McWilliams said on Tuesday that US bank regulators are working on precise guidelines for banks interested in bitcoin and other cryptocurrencies.
“I think we need to allow banks in this area while doing proper management and mitigating the risk. If we don’t bring this activity inside the banks, it is going to develop outside the banks… Regulators will not be able to regulate it,” Ms McWilliams told Reuters.
So far, US regulators have not issued any guidelines on how banks can hold crypto assets.
Despite the lack of guidelines, some major banks and financial services in the US do not shy away from offering services related to digital assets.
Mastercard announced on Monday that it will soon allow merchants, banks and fintech operators in the US to offer cryptocurrency services and products on its network. In July, JPMorgan Chase allowed its wealth management clients access to crypto funds.
Randall Quarles, Federal Reserve Vice President for Supervision, said In May, three US agencies, including the Office of the Comptroller of the Currency and the FDIC, were working together on a “sprint” on cryptocurrency regulation.
Meanwhile, the Federal Reserve is also working on a paper on stablecoins and the White House has put together a working group to look into cryptocurrency regulations.
If a federal roadmap is successful, it could spark a new wave of bitcoin and crypto adoption and facilitate more trading as currencies or as collateral assets for loans.
It could also open up an opportunity for banks in the US to have bitcoin on their balance sheets, which has the potential to counteract the loans issued by them.
Credit: www.independent.co.uk /