Federal Deposit Insurance Corporation (FDIC) Chairwoman Elena McWilliams said at the Money 20/20 conference that US regulators are focused on creating clear guidelines that how banks should interact with the crypto industry.
McWilliams emphasized that her job is to provide clear rules “for innovation to flourish while reducing risk.”
“If we don’t do this, we risk stifling innovation and depriving America leadership of developing technologies that are changing the world,” she added.
McWilliams further said:
“I think that we need to allow banks in this space, while appropriately managing and mitigating risk. If we don’t bring this activity inside the banks, it is going to develop outside of the banks…The federal regulators won’t be able to regulate it.
The head of the FDIC noted that her department, the Federal Reserve System, and the Office of the Comptroller of the Currency under the US Treasury is working on this matter.
“Organizations are coordinating actions by deciding how and under what circumstances banks can participate in crypto asset-related activities.”
She said about crypto and banks:
“My goal in this interagency group is to basically provide a path for banks to be able to act as a custodian of these assets, use crypto assets, digital assets as some form of collateral, At some point in time, we’re going to tackle how and under what circumstances banks can hold them on their balance sheet.”
According to her, in the coming months, regulators will submit a series of crypto regulation relevant policies.
Expressing her thoughts, McWilliams focused on stable coins. She said that the stable coin segment should be subject to carefully considered government control.
The head of the FDIC stated that the roadmap being developed by regulators will include rules governing the storage of cryptocurrency to crypto trading, crypto use as collateral for loans, and adding crypto to balance sheets along with traditional assets.
Earlier, McWilliams said that more and more lending institutions in the United States are working with digital assets.