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Crypto-asset associated actions could pose “novel risks” to banks and their clients, prompting the US Federal Reserve to develop additional rules, Fed vice chair for supervision Michael Barr mentioned in a speech Wednesday at DC Fintech Week,
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See associated article: US Fed has rising curiosity in CBDCs, says Jeng at Crypto Council for Innovation
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Fast information“The board is working with our colleagues at the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) to ensure that crypto-asset related activities banks may become involved in are well regulated and supervised, to protect both customers and the financial system,” Barr mentioned.Crypto-related actions expose banks to novel dangers, Barr mentioned, insisting that banks want to make sure these actions are legally permissible and be ready to regulate dangers. Some dangers that Barr talked about in his speech have been fraud, theft, manipulation, cash laundering and excessive volatility. Highly risky crypto property can be an unlikely substitute for fiat foreign money, mentioned Barr, who added that stablecoins have “greater capacity to function as privately issued money.” The Fed is working with different regulatory businesses to arrange the regulatory framework for stablecoins, in accordance with Barr, who publicly urged the US Congress to arrange laws on stablecoins final month. Bank of New York Mellon Corp., the most important custodian financial institution on the planet, introduced the launch of its first custody service on Bitcoin and Ether earlier this week.
See associated article: Fed officers name for stablecoin rules amid issues over monetary stability
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