By Michelle Price

WASHINGTON, (Reuters) – The U.S. regulators must clarify the rules for cryptocurrencies and digital assets in the face of ongoing confusion about what is allowed.

“We hope for more clarity about digital assets,” Emily Portney (chief financial officer at Bank of New (BNY Mellon Corp), the nation’s tenth-largest lender) told Reuters.

“Frankly, it’s a bit confusing about who actually regulates digital assets and especially crypto … and of course exactly what you can or cannot do,” said Portney, speaking after the bank posted a 17% rise in fourth quarter profits.

Portney’s comment highlights growing frustration in the banking industry as U.S. President Joe Biden’s regulators have been cautious about digital assets. Although cryptocurrencies have surpassed $3 trillion by November, many banks want to be in the market but feel they are unable to launch new products or increase their offerings until clearer rules are established.

BNY Mellon, which is a specialist in the holding and servicing of assets for clients, has announced that it will be creating a platform to manage digital assets.

The Office of the Comptroller of the Currency (OCC) said in November that banks must obtain written permission from their bank supervisors before engaging in cryptocurrency-related activities, including custody services, a reversal from the Trump administration’s policy which gave banks permission to provide crypto custody services.

The OCC and other regulators are engaged in a “policy sprint” to understand where to offer regulatory clarity for banks on cryptocurrencies. The OCC and other regulators will be able to provide new guidance and rules on cryptocurrencies, possibly as soon as this calendar year.

Portney stated that a lot of activity takes place in what I’d call shadow banking systems, because there isn’t enough clarity.