U.S. banking regulators to clarify banks’ crypto role in 2022 – statement – Reuters

U.S. banking regulators to clarify banks’ crypto role in 2022 – statement – Reuters

A representation of the virtual cryptocurrency Bitcoin is seen in this picture illustration taken October 19, 2021. REUTERS/Edgar Su

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WASHINGTON, Nov 23 (Reuters) – U.S. banking regulators intend to clarify in 2022 what role traditional banks can legally play in the cryptocurrency market, they said on Tuesday.

In a statement, regulators said they plan to make clear what sort of activities banks can engage in involving cryptocurrency, including holding it on their balance sheets, issuing stablecoins and holding crypto assets and facilitating crypto trading on behalf of customers, among other currently murky areas.

The joint statement from the Federal Reserve, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency is an update on work done by an interagency “sprint” team convened earlier this year.

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While not providing details, the agencies said the rapid growth of cryptocurrency presents “potential opportunities and risks” for traditional banks. They said regulators want to provide
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