On 11/23/21, the joint agencies issued a statement summarizing their recent interagency “policy sprints” focused on crypto-assets and providing a roadmap of future work related to crypto-assets. This recent series of interagency policy sprints followed the “tech sprint” model, where goals are set for when specific work must be completed, typically in a short amount of time such as a 30-day period. In their release, the agencies explain that the statement describes the focus of the preliminary work conducted through the sprints undertaken by the agencies. It summarizes the agencies’ plan to provide greater clarity throughout 2022 on whether certain crypto-related activities conducted by banking organizations are legally permissible, and related expectations for safety and soundness, consumer protection, and compliance with existing law and regulations.
Specifically, Agency staff focused on quickly advancing and building on the agencies’ combined knowledge and understanding related to banking organizations’ potential involvement in crypto-asset-related activities. The focus of the sprint work included:
Developing a commonly understood vocabulary using consistent terms regarding the use of crypto-assets by banking organizations.
Identifying and assessing key risks, including those related to safety and soundness, consumer protection, and compliance, and considering legal permissibility related to potential crypto-asset activities conducted by banking organizations.
Analyzing the applicability of existing regulations and guidance and identifying areas that may benefit from additional clarification.
Throughout 2022, the agencies plan to provide greater clarity on whether certain activities related to crypto-assets conducted by banking organizations are legally permissible, and expectations for safety and soundness, consumer protection, and compliance with existing laws and regulations related to:
• Crypto-asset safekeeping and traditional custody services.
Ancillary custody services.
Facilitation of customer purchases and sales of crypto-assets.
Loans collateralized by crypto-assets. • Issuance and distribution of stablecoins.
Activities involving the holding of crypto-assets on balance sheet.
The agencies also will evaluate the application of bank capital and liquidity standards to cryptoassets for activities involving U.S. banking organizations and will continue to engage with the Basel Committee on Banking Supervision on its consultative process in this area. The agencies continue to monitor developments in crypto-assets and may address other issues as the market evolves. Further, the agencies will continue to engage and collaborate with other relevant authorities, as appropriate, on issues arising from activities involving crypto-assets.
The agencies also explain that the emerging crypto-asset sector presents potential opportunities and risks to banking organizations, their customers, and the overall financial system.
The joint statement can be found here.
