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US regulators are exploring policies that would allow banks to handle cryptos, FDIC Chair reveals By BTC Peers

by Mike Robinson

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According to FDIC Chair, US regulators are currently looking into policies that could allow banks and other institutions to deal with cryptos.

Jelena McWilliams (chairperson) of Federal Deposit Insurance Corporation has indicated that FDIC is joining hands with other American regulatory bodies to examine the many avenues by which banks could engage in cryptocurrency activities.

McWilliams, speaking at the Money20/20 Fintech Conference, stated Monday that the FDIC and the Federal Reserve, along with the Office of the Comptroller of the Currency are looking for ways to ensure regulatory clarity for crypto asset banks, as well as stablecoins. She added that the FDIC would release “a series of policy statements” on guidance for banks in the forthcoming months.

McWilliams stated that stablecoins could offer consumers many advantages, including faster, less costly, and more efficient payments. However, she opined that if “one or more were to become a dominant form of payment in the United States or globally,” it could bear significant effects on that country’s financial stability with funds no longer accumulated in insured banks.

To reap all the potential benefits of stablecoins, and to account for possible risks, it is important that stablecoins are subject to a well-planned government oversight […]This oversight must be based on the fact that stablecoins obtained from other banks are backed by highly liquid, safe assets.

The latest comments from the FDIC Chair came a few hours after it was reported that several US regulators had agreed that the Securities and Exchange Commission (SEC) would preside over the nation’s efforts to regulate stablecoins.

The Department of the Treasury announced that they were considering creating a bank charter specifically for stablecoin-emitters.

Due to unclear regulatory guidance around digital assets, many US companies are still being wary of any legal action or government backlash. However, lawmakers are proposing policies to require US regulators to reach out to crypto participants and make better decisions about the space.

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