Mega bullish news for Bitcoin and all cryptocurrencies as one of the united states top bank regulator, Chairman of the Federal Deposit Insurance Corporation (FDIC), Jelena McWilliams in an interview with Reuters on October 26th, says she believes it's time for banks to hold crypto assets for themselves and offer it their customers.
"I think that we need to allow banks in this space, while appropriately managing and mitigating risk."
"If we don't bring this activity inside the banks, it is going to develop outside of the banks. ... The federal regulators won't be able to regulate it." She added.
these quotes above were taken from Reuters
Her comments paints a full picture and indicates what her interagency teams plan to incorporate cryptocurrency into traditional banks and coordinating cryptocurrency policies for U.S. banks. This interagency team is made of the three major bank regulators in the united states, which are Federal Deposit Insurance Corporation (FDIC), Federal Reserve and Office of the Comptroller of the Currency(OCC).
"My goal in this interagency group is to basically provide a path for banks to be able to act as a custodian of these assets, use crypto assets, digital assets as some form of collateral," McWilliams said at the event. She indicated that the group will look at rules for holding crypto on their balance sheets, something public companies such as Tesla and Microstrategy are already doing.
Former head of the United States Office of the Comptroller of the Currency (OCC), Brian Brooks under former president Donald Trumps administration, established a rule that allows federal banks to accept custody of cryptocurrency assets for their costumers.
"From safe-deposit boxes to virtual vaults, we must ensure banks can meet the financial services needs of their customers today," Brooks said upon the release of a letter interpreting the agency's rules. "This opinion clarifies that banks can continue satisfying their customers' needs for safeguarding their most valuable assets, which today for tens of millions of Americans includes cryptocurrency."
Although this rule that allows banks hold or take custody of crypto assets for costumers has been put on hold by the current head of OCC, Michael Hsu.
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