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Fed’s top bank watchdog eyes new regulation for banks doing crypto

Fed’s top bank watchdog eyes new regulation for banks doing crypto

Fed’s top bank watchdog eyes new regulation for banks doing crypto

Crypto-asset associated sports might also additionally pose “novel risks” to banks and their customers, prompting the U.S. Federal Reserve to broaden in addition regulations, Fed vice chair for supervision Michael Barr stated in a speech Wednesday at D.C. Fintech Week.

Fast facts

  • “The board is working with our colleagues on the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) to make sure that crypto asset associated sports banks can also additionally grow to be concerned in are properly regulated and supervised, to protect each clients and the monetary system,” Barr stated.
  • Crypto-associated sports disclose banks to novel dangers, Barr stated, insisting that banks want to make certain the ones sports are legally permissible and be organized to manipulate dangers.
  • Some dangers that Barr stated in his speech had been fraud, theft, manipulation, cash laundering and excessive
  • Highly risky crypto belongings could be a not likely replacement for fiat currency, stated Barr, who delivered that stable coins have “extra potential to characteristic as privately issued cash.”
  • The Fed is operating with different regulatory companies to installation the regulatory framework for stable coins, consistent with Barr, who publicly advised the U.S. Congress to put together law on stable coins’ final
  • Bank of New York Mellon Corp., the most important custodian financial institution with inside the world, introduced the release of its first custody carrier on Bitcoin and Ether in advance this week.

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