US agencies set to become even more cautious on crypto, warns Bank Watchdog

[ad_1]

(Bloomberg) – Cryptocurrencies have struggled to gain acceptance in the U.S. financial system. Now they’re about to hit a new hurdle with bank watchdogs expected to herald an even more cautious approach to digital token regulation.

Michael Hsu, the acting chief of the Office of the Comptroller of the Currency, said on Tuesday that federal agencies were set to issue a joint statement outlining the results of their “crypto sprint,” a review the government conducted earlier this year to get better handle virtual currencies. He pointed out that the findings of the OCC, the Federal Reserve and the Federal Deposit Insurance Corp. would be far from favorable to the industry.

“Agencies approach crypto business very cautiously with a high degree of caution,” Hsu said at a financial technology conference hosted by the Federal Reserve Bank of Philadelphia.

Hsu also said the guidelines issued by the OCC at the end of the Trump administration should not be interpreted as encouraging banks to get into crypto. Hsu said the OCC was on the verge of clarifying the so-called interpretive letters, which the agency issued under former acting chief Brian Brooks. Brooks is a voice support for digital token companies now working in the industry.

“Future releases will make it clear that safety and durability are paramount,” Hsu said. “We will proceed with caution and prudence and we will keep the banks at the same level.”

© 2021 Bloomberg LP

[ad_2]