The Fed, OCC, And FDIC Plan To Define Legal Banking Activities Related To Crypto In 2022

The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) issued a joint statement on the crypto asset policy sprint initiative and next steps on Tuesday. 

The statement summarized the work of the policy sprint team in 2021. The team studied cryptocurrency custody, sales, loans, and payment activities that banks and similar regulated entities may wish to participate in. 

The team will focus on creating a common vocabulary around digital assets, identifying the risks consumers may face, and evaluating how current regulations apply to digital assets. In the next year, the organization plans to make it clearer whether the custody, purchase/sale, loan, stablecoin issuance, and holding of crypto assets by regulated institutions are legal, and to define legal banking activities surrounding cryptocurrencies.

The statement said: "The agencies also will evaluate the application of bank capital and liquidity standards to crypto assets for activities involving U.S. banking organizations and will continue to engage with the Basel Committee on Banking Supervision on its consultative process in this area."

By Mary Liu

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