Leading financial services trade associations voiced strong support today for the goals of the President’s Working Group on Digital Asset Markets. The organizations include the Bank Policy Institute, American Bankers Association, Americas Focus Committee of the Association of Global Custodians, Financial Services Forum, Securities Industry and Financial Markets Association and The Clearing House Association. In a joint letter, the Associations propose recommendations to bolster U.S. leadership in digital assets by removing obstacles to bank engagement with digital asset activities.
“We strongly support the President’s goals for the PWG, and we stand ready to assist you as you proceed with the work plan outlined by the President in his January 23rd Executive Order,” the Associations wrote. “The federal banking agencies’ policies and guidance issued over the last few years regarding digital assets activities have hindered banks’ ability to engage in those activities, and, in turn, the competitiveness of the United States financial system, as non-U.S. firms are not subject to similar requirements. Simply put, the United States will not be able to achieve a leadership position in digital assets and financial technology under the status quo.”
The recommendations call for several policy statements and guidance documents issued by the federal banking agencies to be rescinded or substantially revised. These policies restrain banks’ ability to engage in virtually any digital asset-related activity, including offering custody and safekeeping services for digital assets, facilitating customer purchases and sales of crypto-assets, holding crypto-assets on their balance sheets or leveraging public blockchains.
The letter also encourages the Working Group to include the prudential banking agencies — the Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency — in its ongoing work. Involvement by the banking agencies would help ensure that banks can participate in digital asset activities and, thereby, advance U.S. leadership in the digital assets ecosystem in furtherance of the goal of the Executive Order.
Policies and guidance identified that should be rescinded or substantially revised include:
- Federal Reserve
- SR 22-6, “Engagement in Crypto-Asset-Related Activities by Federal Reserve Supervised Banks”
- Policy Statement on Section 9(13) of the Federal Reserve Act
- SR 23-7, “Creation of a Novel Activities Supervision Program”
- SR 23-8, “Supervisory Nonobjection Process for State Member Banks Seeking to Engage in Certain Activities Involving Dollar Tokens”
- OCC
- Interpretive Letter #1179, “Chief Counsel’s Interpretation Clarifying: (1) Authority of a Bank to Engage in Certain Cryptocurrency Activities; and (2) Authority of the OCC to Charter a National Trust Bank”
- FDIC
- FIL-16-2022, “Notification of Engaging in Crypto-Related Activities”
- Joint, Federal Reserve, OCC and FDIC
- Joint Statement on Crypto-Asset Risks to Banks
- Joint Statement on Liquidity Risks to Banks Resulting from Crypto-Asset Market Vulnerabilities
To access a copy of the letter, please click here.
