A top US bank regulator has expressed his optimism about the potential for crypto in US markets. The regulator hinted that they are looking for ways to form guidelines. The chairperson of the FDIC Jelena McWilliams said that US bank regulators are working with crypto businesses and academics to provide guidelines for banks interested in bitcoin trade.
“I think that we need to allow banks in this space. Yet, appropriately managing and mitigating risk. If we don’t bring this activity inside the banks, it is going to develop outside of the banks. The federal regulators won’t be able to regulate it.” Ms. McWilliams told Reuters.
So far, US bank regulators have not issued any guidelines on how banks could hold crypto assets.
Despite the lack of guidelines, some banks have been offering digital assets-related products.
Mastercard said that it would soon allow enterprises and fintechs in the US to offer crypto services. Recently, JPMorgan Chase made waves when it opened up access to crypto-assets.
Bank Regulators are Pushing for Crypto adoption rules
The race to regulate cryptocurrency has heated up over the past few months. There is an increased number of US agencies getting involved. So far three firms including Office Comptroller and FDIC are working on this “sprint.”
The Federal Reserve is working on a paper that tries how to use stablecoins with fiscal policy. Meanwhile, the White House has created an interagency group dedicated to crypto laws and oversight issues.
The federal roadmap gives hope. It could result in an increase in bitcoin and crypto adoption. This would pave way for more trading as currencies or collateral assets for loans.
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It is possible that banks in the US could begin to hold bitcoin on their balance sheets. This would give them an opportunity to counteract any debt they issue.