While attending the Money 20/20 conference, Jelena McWilliams (chair of the FDIC) described to Reuters the steps being taken by a consortium of U.S. bank regulators (FDIC, FRB and OCC) to enable regulated institutions to interact with cryptocurrencies, including Bitcoin.
Short of going into the specifics of what bank's might potentially do with cryptocurrencies, here are a few flavors of what is being contemplated by this interagency group of regulators:
- rules over holding cryptocurrency in custody
- using cryptocurrency as collateral for loans
- carrying cryptocurrency as assets on balance sheets
This is particularly important considering recent calls from other Federal agencies (DOJ, Treasury, SEC and CFTC) for increased regulatory and enforcement scrutiny of certain cryptocurrency actors / actions.
As innovation and regulation push onward, seemingly unencumbered from one another, I continue to look forward to what their inevitable encounter will mean for Cryptocurrencies in the U.S.
U.S. regulators exploring how banks could hold crypto assets - FDIC chairman