US regulators will issue guidance for banks dealing with cryptocurrencies in 2022 | Currency News | Financial and Business News

  • US regulators said they plan to issue guidance next year on the role of traditional banks when it comes to dealing with cryptos.
  • The agencies include the Board of Governors of the Federal Reserve, the FDIC, and the OCC.
  • They analyzed digital asset activities banks may be interested in such as custody and sales of crypto assets.
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US regulators said they plan to issue guidance next year on the role of traditional banks in cryptocurrencies to promote consumer protection and compliance.

The Federal Reserve’s board of governors, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency revealed they recently conducted a series of interagency “policy sprints” focused on digital asset activities banks may be interested in, according to a joint statement Tuesday. 

They include crypto custody, sales of crypto assets, loans collateralized by crypto assets, holding these on their balance sheets, and stablecoins, among others.

Thus far, the three federal agencies said they have focused on developing a consistent crypto vocabulary, identifying key risks related to safety and compliance, and analyzing the applicability of existing regulations and guidance.

“Throughout 2022, the agencies plan to provide greater clarity on whether certain activities related to cryptoassets conducted by banking organizations are legally permissible, and expectations for safety and soundness, consumer protection, and compliance with existing laws,” they said in a statement dated November 23.

In May, the three agencies first announced the formation of an interagency team for crypto regulation, The Block reported.

Despite the lack of regulatory clarity, major US banks have not shied away from offering services related to digital assets.

US Bank in October launched a crypto custody service for fund managers amid growing demand. JPMorgan Chase in July allowed all its wealth management clients access to crypto funds. Citigroup, a month after, announced it is considering trading bitcoin futures, following Goldman Sachs’s lead in May.