US Regulators Clarify How Banks Can Engage With Bitcoin # 2022

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U.S. banks will be provided with greater regulatory clarity on how they can engage with Bitcoin and cryptocurrency. The Fed, FDIC and OCC plan to issue guidelines for financial institutions seeking to offer services in the asset class. The team of regulators analyzed the custody, bitcoin-backed loans, payments, buying and selling, and holding of BTC on bank balance sheets.

A team of U.S. agencies plans to clarify how banking institutions could engage with bitcoin and cryptocurrency over the next year, according to a joint statement released on November 23.

The Board of Governors of the Federal Reserve (Fed), the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) said they recognize the potential opportunities that Bitcoin could offer banks, their customers. and the financial system. However, they aim to provide clarity to promote “customer protection” and “compliance with applicable laws and regulations”.

“To that end, the agencies recently conducted a series of interagency crypto-asset-focused ‘policy sprints’,” the statement said. “Similar to a ‘tech sprint’ model, agency staff with diverse backgrounds and relevant subject matter expertise have performed preliminary analysis on various issues regarding crypto assets.”

The three regulators analyzed the Bitcoin activities that banks might be interested in undertaking, including safekeeping, Bitcoin-backed loans, payments, facilitating customer buying and selling, and holding Bitcoin on bank balance sheets. .

The group has not yet provided the necessary regulatory clarity. Throughout 2022, the Fed, FDIC, and OCC plan to jointly share detailed advice for banks interested in offering the analyzed cryptocurrency services.

In October, the FDIC chairman hinted at this development, saying a team of regulators were working on a more specific set of rules for banks interested in engaging with Bitcoin and cryptocurrency. “I think we need to empower banks in this space, while managing and mitigating risk appropriately,” said Jelena McWilliams. The three agencies began working together on a “sprint” on cryptocurrency regulation in May.

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