FDIC Head: US Regulators Create Conditions for Banks to Work with Cryptocurrencies

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The Federal Deposit Insurance Corporation (FDIC) chairwoman Jelena McWilliams said at the Money 20/20 conference US regulators are focused on creating “clear guidelines” governing how banks interact with the crypto industry.

McWilliams has emphasized her job is to provide clear rules “for innovation to flourish while reducing risk.” She added:

“If we don’t do this, we risk stifling innovation and depriving America of leadership in developing technologies that are changing the world.”

The head of the FDIC has noted that her department, the Federal Reserve System and the Office of the Comptroller of the Currency under the US Treasury are working on this problem.

“Organizations are coordinating action by deciding how and under what circumstances banks can participate in crypto asset-related activities.”

According to her, in the coming months, regulators will submit a series of relevant policy statements.

During her speech, McWilliams has focused on stablecoins. She has expressed her belief that the segment should be subject to “carefully considered government oversight.” In particular, regulators should monitor the security of the “stablecoins” of the underlying asset, the operational stability of the issuers and combat money laundering.

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