Banking regulator lays out roadmap for cryptocurrency
Banking regulator lays out roadmap for cryptocurrency

Bank of America provided more information about its regulatory plans for cryptocurrency, published a list of priorities for the next year, and announced a new policy that requires banks to obtain approval before offering crypto products.

According to a joint statement, the Federal Reserve and other banking institutions released an agenda outlining key areas, including crypto-backed lending planning and capital requirements.

In addition, the Office of the Comptroller of the Currency said that banks must obtain additional approval from regulators before dealing with cryptocurrencies.

The Office of the Auditor General, the FDIC and the Federal Reserve announced that these institutions plan to clarify whether certain activities related to crypto-assets by banking institutions will be legal in 2022.

Although the agenda does not affect the current regulations, the officials wanted to clarify that the next year could regulate the regulation of banks that use cryptocurrency.

The roadmap for crypto-assets overlaps with the bank’s decision to deposit cryptocurrencies with the bank, which was taken by the Office of the Auditor General when Brian Brooks ran the agency in 2020, although current auditor Michael Hsu has paused such efforts.

After completing the so-called Crypto Sprint, how did the research organization handle cryptocurrencies. Banking supervision has identified several areas that require clarification.

These topics include how banks should properly manage crypto assets. And what companies should do to help consumers with transactions. How should stablecoins be spent? What capital and liquidity criteria should a lender have for crypto assets?

The Office of the Auditor General then published a roadmap with new guidelines on how banks should interpret previous crypto guidelines.

Clarifying cryptocurrency rules for 2022

The agency required the banks it supervises to obtain pre-approval before it takes over the custody of cryptocurrencies. And keep the money on deposit to support stablecoins. and manage encrypted transactions related to distributed ledgers.

Before being signed by the auditors, the lender must apply for a special permit and demonstrate adequate risk control.

Follow the 2022 roadmap and other current recommendations. The State Audit Bureau and other institutions may consider new rules to organize tokens in a similar way to bank assets.

The president's staff hopes that Congress will pass a law requiring regulated banks to issue stablecoins.

The agency’s management team also asked the country’s regulators to assess whether the tokens pose a risk to the financial system as a whole.

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