In a letter to senators today, the American Bankers Association today highlighted recent FDIC documentation showing that regulators discouraged banks from fully engaging with digital assets, stressing that such a decision should be left to banks.
In a statement issued to the Banking Subcommittee on Digital Assets for a hearing on digital asset regulation, ABA reiterated its position that any regulatory framework should apply the principle of “same activity, same risk, same regulation” and ensure the resulting ecosystem operates with safeguards that appropriately mitigate financial stability and consumer protection risk. ABA also pointed to documents released by Acting FDIC Chairman Travis Hill indicating that the agency discouraged banks from engaging with the digital asset ecosystem.
ABA stressed that the decision of whether to engage with legal businesses should be left to banks, not regulators. “Banks specialize in offering diverse products and services, ranging from personal loans and mortgages to financing infrastructure in cities and towns across America such as schools and bridges, and preserving the flexibility to serve legal businesses that fit within their unique business models and risk appetite is critical,” ABA said.
ABA also reiterated its strong opposition to a central bank digital currency, “which would set the Federal Reserve up as a direct competitor for bank deposits and limit banks’ ability to make the loans that power economic growth.”
