The American Bankers Association this week joined the Bank Policy Institute and five associations to offer recommendations for lowering barriers to bank engagement with digital assets.
President Trump created the Working Group on Digital Asset Markets in January, which consists of several top officials, including the securities of the Treasury, Commerce and Homeland Security. In a letter to working group members, the associations said that guidance from banking agencies has stifled banks’ ability to engage in digital asset activities, putting U.S. firms at a competitive disadvantage compared to foreign firms not subject to similar requirements.
The associations had three high-level recommendations. First, federal banking agencies should issue joint rules and guidance to promote clarity and consistency. Second, agencies should codify a technology-neutral approach to permissibility and issue specific permissibility guidance. Finally, agencies should clarify the risk management expectations for banks’ engagement in digital asset-related activities.
“Banks are an essential component of the financial and payments systems and are governed by a comprehensive regulatory framework carefully crafted to mitigate the risks inherent to financial activities, and it is critical that their ability to engage in digital asset activities is not hindered by the federal banking agencies,” they said.
