One of the agencies overseeing the U.S. banking industry has set its sight on regulating cryptocurrencies. The Federal Deposit Insurance Corporation (FDIC) is working with the Federal Reserve and other financial watchdogs on how to regulate the crypto industry better. One of its proposals is that all stablecoins must prove to regulators that they are backed 1:1 by highly liquid assets.
FDIC provides deposit insurance to depositors in U.S. banks.
FDIC provides deposit insurance to depositors in U.S. banks and is one of the agencies that oversee the banking sector. It insures over 4,500 institutions in the country. According to its chairperson, the FDIC is seeking to add its name to the list of regulators that want to oversee the digital currency industry. Speaking at the Money 20/20 conference, chair Jelena McWilliams said she had been in talks with the Fed and the Office of the Comptroller of the Currency (OCC) on what she described as ‘the crypto sprint.’ The three are coordinating policies for when banks are permitted to engage in digital currency activities through this process.
FDIC wants to provide clear guidance to the public on crypto assets.
Jelena McWilliams further noted, “My objective is to provide clear guidance to the public on how our existing rules and policies apply to crypto-assets, what types of activities are permissible for banks to engage in, and what supervisory expectations we have for banks that do engage in such activities.” According to McWilliams, the three agencies plan to release a series of policy statements in the coming months. Stablecoins are the biggest area of focus for regulators, and the FDIC head delved into them. McWilliams, who was appointed to the FDIC in 2018 by former President Donald Trump, acknowledged that stablecoins offer several benefits