US Officials are consistently looking for a reliable, dependable way for bank systems regarding cryptocurrency. An acceptably clearer path should keep control over the incredibly fast-growing assets.
Jelena McWilliams, currently chair of the Federal Deposit Insurance Corporation made the statement. Reuters interviewed her on the sidelines of the FinTech Conference on Monday.
She explicitly focused on the banks along with their clients to plan crypto holding. An expert team of US regulators is already engaged in establishing a roadmap. It’s likely to include more defined, specific & straightforward rules over holding crypto assets in banks.
However, the roadmap is believed to allow multiple facilitation regarding crypto trading. Clients may even use the currency as collateral for loans alongside balance sheet savings.
According to Jelena, US regulators need to allow banks in this particular space. But the process comes with appropriate management with mitigated risks – she added.
Also, she clarified the necessity of regulating crypto assets within the banks as soon as possible. It’s going to develop outside the banks if the authority doesn’t bring the activities inside. The federal regulators are unlikely to control the trading anymore – she said.
Her comments provide a somewhat full picture of the announced ‘Sprint Team’ working objectives. It consists of three main bank regulators of the US, first announced in May. Federal Reserve, FDIC & Office of the Comptroller of the Currency are set to ensure a coordinated policy.
Rapid emergence of crypto assets in 2021 has already created a headache among US regulators. The Comptroller Office even took an aggressive approach to put cryptos into banks. However, the previous OCC decisions are currently under review for validity or approval.
Not to mention, several US banks are already planning to enter the crypto world without regulation clarity. US Bancorp announced plans to launch a crypto custody service for potential clients this month.
Almost every cryptocurrency continues to surge with slight plunges from the last week. It actually becomes a reality for US banks to serve clients regarding crypto trading activities.