As policymakers develop a regulatory framework for digital assets, they 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, the American Bankers Association told House lawmakers.
The House Financial Services Subcommittee on Digital Assets, Financial Technology and Artificial Intelligence held a hearing today on digital asset regulation. In a statement to the subcommittee, ABA stressed the need for Congress to ensure all customers are protected equally, “regardless of where they engage with the financial marketplace, and that the U.S. financial system remains strong, safe and competitive.”
At the same time, ABA pointed to recently released documents by the FDIC that show regulators discouraged banks from pursuing business in the digital asset market. “And while not every bank will choose to engage in the digital asset ecosystem, that decision should be theirs, not their regulator’s,” it said.
“Banks have a critical role to play in the digital asset ecosystem, which has the potential to be a catalyst for change in traditional financial markets, with significant implications for our financial system, economy, markets and most importantly for the American consumer,” ABA said.
