Good News Again For Crypto Lovers, Dare to Read?

The United States (US) banking regulator is reportedly making a road map that allows US banks to be involved in cryptocurrency assets (crypto money).

This was disclosed by Jelena McWilliams chairman of the Federal Depsosit Insurance Corporation. In Indonesia, this agency is similar to the Deposit Insurance Corporation (LPS), as quoted by Reuters, Wednesday (27/10/2021).

 

One of the talks discussed was clearer rules about the possibility for banks to hold cryptocurrencies to facilitate client trading, use them as collateral for loans, or even hold cryptocurrencies and be listed on a bank's balance sheet like any other traditional asset.

 

"I think we need to allow banks in this space, while managing and mitigating risk appropriately," said Jelena McWilliams.

 

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"If we don't bring this activity inside the banks, cryptocurrencies will thrive outside the banks ... federal regulators won't be able to regulate it."

 

Several US banks are known to have entered into cryptocurrencies without clear rules. Earlier this month, US Bancorp announced the launch of a cryptocurrency storage service for institutional investment managers.

 

"My goal in this interagency group is basically to provide an avenue for banks to act as custodians of these assets, using crypto assets, digital assets as some form of collateral," said Jelena McWilliams.

 

“At some point, we will address how and under what circumstances banks can hold cryptocurrencies on their balance sheets.”

 

"The problem is ... the valuation of these assets and their near-daily fluctuations in value," said Jelena McWilliams. "You have to decide what type of capital and liquidity treatment to allocate to such balance sheet holdings."

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