Banking Regulators Defining Cryptocurrency Roadmap

US banking agencies have provided more information about their plans to regulate cryptocurrency, released a to-do list of their priorities for the coming year and announced a new policy requiring banks to obtain permission before offering crypto products.

The Federal Reserve and other banking agencies have released an agenda outlining areas of focus, including how they plan on crypto-backed loans and capital requirements, according to to show subscriber.

Separately, the Office of the Comptroller of the Currency said that banks must obtain additional approval from the regulator before dealing with cryptocurrencies.

The Office of the Comptroller and the Federal Deposit Insurance Corporation andFor the Federal Reserve: The agencies plan throughout 2022 to provide greater clarity about whether certain crypto-asset-related activities conducted by banking institutions are legally permitted.

While the agenda does not affect any current regulations, officials said they wanted to make clear that the coming year could shape how agencies regulate how banks use cryptocurrencies.

The crypto-asset roadmap overlaps with moves the comptroller’s office took in 2020 to bank crypto when Brian Brooks was in charge of the agency, although acting comptroller Michael Hsu temporarily halted these efforts.

And after they finished what they called Crypto Sprint to study how agencies deal with cryptocurrency. Banking regulators have settled on several areas that need to be clarified.

These issues include how banks should properly maintain crypto assets. And what businesses should do to help consumers make transactions. How should stable coins be issued? And what are the capital and liquidity criteria that lenders crypto holdings should have.

The Comptroller’s Office followed up with the release of a roadmap with a new policy on how banks should interpret previous crypto directives.

Clarifying Cryptocurrency Rules in 2022

The agency has instructed the banks it regulates to obtain pre-approval before they can manage the custody of cryptocurrencies. And holding the funds deposited to support stablecoins. and handle cryptographic transactions associated with a distributed ledger.

Lenders are required to request special permission and demonstrate that they have adequate risk controls before the Office of the Comptroller can sign.

And following the 2022 roadmap and other recent recommendations. The Office of the Comptroller and other agencies could consider new rules to regulate tokens in a manner similar to bank assets.

The president’s working group wants Congress to pass legislation requiring stablecoins to be issued by regulated banks.

The agency heads group also called on government supervisors to assess whether tokens pose risks to the broader financial system.

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