Regulators Planning Crypto Guidance for Banks
November 24, 2021
Banks can expect additional guidance from regulators over the next year clarifying the types of crypto-related activities they may be permitted to engage in, the agencies announced in a joint statement yesterday. As a result of a recent “crypto sprint,” the FDIC, Federal Reserve and OCC unveiled a crypto-asset roadmap that will guide their work in 2022.
Specifically, the agencies said that they will issue guidance related to crypto-asset safekeeping and traditional custody services; ancillary custody services; facilitation of customer purchases and sales of crypto-assets; loans collateralized by crypto-assets; the issuance and distribution of stablecoins; and activities involving the holding of crypto-assets on a bank’s balance sheet. In addition, the agencies said they will also evaluate how to apply bank capital and liquidity standards to crypto-assets.
During the crypto sprint, regulators said they developed a common vocabulary regarding the use of crypto-assets, identified and assessed key risks—including those related to safety and soundness, consumer protection and compliance—and analyzed the applicability of existing regulations to identify potential gaps. Read more.