WASHINGTON: The US banking regulator intends to clarify in 2022 what roles can be played by traditional banks in the Cryptocurrency market, they said on Tuesday.
In a statement, the regulator said they planned to clarify what types of bank activities could be involved in involving cryptocurrency, including holding it on their balance sheet, issuing stablecoins and holding Crypto assets and facilitating Crypto trade on behalf of customers, among other red areas.
A joint statement from the Federal Reserve, a federal deposit insurance company and currency regulatory office is a job update conducted by the “Sprint” interaggency team held earlier this year.
Although it does not provide details, agents say the rapid growth of Cryptocurrency presents “potential opportunities and risks” for traditional banks.
They said the regulator wanted to provide clarity “coordinated and on time” to the institutions they monitored.
“Agency has identified a number of areas where additional public clarity is guaranteed,” said the agency.
“Throughout 2022, the agency plans to provide greater clarity about whether certain activities related to crypto assets carried out by banking organizations are legally permitted, and hopes for safety and health, consumer protection, and compliance with existing laws and regulations.
” Agency officials have worked on the risk identification faced by banks involved in Crypto activity, as well as whether existing regulations must be updated to know the activity.