US To Define Rules for Cryptocurrencies in Banks

It is reported in the recent news on the cryptocurrency sector that the financial regulatory bodies of the US are going to consider how banks should interact with digital assets. 

The Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, and Federal Reserve Board will collaborate to create a set of regulations for the relations between financial institutions and cryptocurrencies.

The rules are expected to be announced in 2022

According to the reports, the initiative will take effect next year. The clarification of rules is important as the demand for crypto assets is constantly growing, and there isn’t a transparent framework for the vertical in the US.

The major aim of the cooperation is to develop a set of rules based on which banking establishments will be able to understand their role in the crypto market. The guidelines will provide all the necessary information for banks for interacting with cryptocurrencies, shedding light on those aspects that haven’t been discussed before and have been obscure. The legislative framework will also result in customer protection, compliance with laws, and safety in the sector. Financial institutions will get a directive, explaining what is legal in their relations with the market of digital assets, including having cryptocurrencies on their balance sheets, trading services, and distribution of stablecoins.

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