In a lecture at D.C. Fintech Week on Wednesday, Fed vice chair for supervision Michael Barr said that crypto-asset linked activities may offer “new dangers” to banks and their clients, requiring the U.S. Federal Reserve to create more laws.
Barr said the board is engaging with the OCC and FDIC to guarantee that crypto-asset-related activities banks may engage in are appropriately regulated and monitored to safeguard clients and the financial system.
Barr said that crypto-related operations expose banks to fresh dangers, adding that banks must guarantee that these activities are lawful and be prepared to manage dangers.
Barr’s speech included mentions of fraud, theft, manipulation, money laundering, and extreme volatility.
Extremely volatile crypto assets are unlikely to replace fiat currency, according to Barr, who added that stablecoins have “more potential to act as privately produced money.”
According to Barr, the Fed is collaborating with other regulatory authorities to establish the regulatory framework for stablecoins. Last month, Barr openly encouraged the U.S. Congress to draft a bill on stablecoins.
This week, the world’s biggest custodian bank, Bank of New York Mellon Corp., announced the introduction of its first custody service for Bitcoin and Ether.
Also Read: US Judge Permits Crypto Supporters To Attend Ooki’s CFTC Defense
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
- Advertisement -
Comments are closed.