The United States Federal Deposit Insurance Corporation is working with other federal regulators to explore ways to effectively regulate cryptocurrencies.
What Happened: FDIC Chairman Jelena McWilliams said during a recent speech the organization is collaborating with other U.S. regulators to find out “under what circumstances banks can engage in activities involving crypto-assets.”
She also highlighted that “establishing clear regulatory expectations will be paramount to give this market an opportunity to grow and mature in a responsible manner.”
During Monday’s Money20/20 Fintech Conference, McWilliams also said the FDIC, the Federal Reserve and the Office of the Comptroller of the Currency want to provide regulatory clarity to banks willing to handle cryptocurrencies and stablecoins.
The regulator plans to issue multiple policy statements over the coming months to guide banking institutions.
Talking about stablecoins, McWilliams said that while they bring many potential benefits to consumers — especially when it comes to payment cost and speed — they also pose a risk to financial stability if they were to grow in popularity.
“Stablecoins should be subject to well-tailored government oversight” to realize their potential while decreasing the risks so we can have the cake and eat it too, McWilliams said.