Ahead of a House Financial Services Committee hearing on digital assets today—at which the heads of several cryptocurrency firms will testify—the American Bankers Association submitted a statement for the record emphasizing the need for bank-like regulations for companies offering digital assets to consumers.
ABA noted that “customers who choose to access digital asset markets will be best served when they can do so through fully regulated banks where they are afforded robust consumer protection.” The association pointed out that banks are subject to robust regulations to ensure safety and soundness, consumer protection and prevent money laundering, and also carry deposit insurance for the FDIC.
In addition, ABA pointed out that banks are already working to offer digital assets safely to customers through their existing banking relationships. “As non-bank technology firms begin offering banking products and services through digital channels, Congress should ensure that these activities are appropriately monitored, emerging risks adequately captured, and all applicable legal requirements met,” ABA said. “Ultimately, a level regulatory playing field in digital assets means a simple proposition: offer bank-like services, receive bank-like oversight.”
