US banking regulators are developing clearer guidelines for banks that deal with cryptocurrencies, report says

US banking regulators are developing clearer guidelines for banks that deal with cryptocurrencies, report says

US banking regulators are developing clearer guidelines for banks that deal with cryptocurrencies as the rapidly growing asset class makes its way into mainstream adoption. Jelena McWilliams, chair of the Federal Deposit Insurance Corporation, told Monday that a roadmap is being developed for financial institutions, including clearer rules on holding cryptocurrencies in custody. "I think that we need to allow banks in this space, while appropriately managing and mitigating risk," she told Reuters. "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." On a conference panel earlier, McWilliams also said she wants regulators to lay out a way ahead for banks to use crypto assets as a form of collateral and how banks can hold them on their balance sheets. Regulators in the US so far have issued no definitive stance on how banks should and could hold cryptocurrencies. In , the Office of the Comptroller of the Currency, the Federal Reserve, and the FDIC discussed the formation of an "interagency sprint team" that will focus on crypto regulation. Meanwhile, the Fed is working on a paper that covers stablecoins, while