Federal watchdogs have grown increasingly focused on making sure that crypto’s volatility doesn’t have negative impacts on the broader financial system. Meanwhile, traditional financial firms are seeking ways to grow in the fast-growing asset class.
“The emerging crypto-asset sector presents potential opportunities to banking organizations, their customers, and the overall financial system; however, crypto-asset-related activities may also pose risks related to safety and soundness, consumer protection, and financial stability,” said the statement from Michael Gibson, director of the Fed’s division of supervision and regulation, and Eric Belsky, who leads the consumer and community affairs unit.
Earlier this week, the Fed issued guidance for how it will evaluate applications from financial institutions to use the central bank’s accounts and payment services. A push for access by crypto firms has become a hot-button political issue in Washington.