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According to the Federal Reserve Vice Chair, the Fed, the OCC, and the FDIC are hurrying to implement cryptocurrency plans.
Federal Reserve Vice Chair of Supervision Randal Quarles stated on Tuesday that the United States is rushing to unify its policies on Bitcoin and cryptocurrency-related concerns and develop comprehensive crypto rules.
As Reuters reported, Quarles was answering a question about the illicit use of cryptocurrency during a meeting of the Senate banking committee. He spoke about whether issues related to cryptocurrency were being addressed.
“We along with the OCC and the FDIC are engaged right now in what we are calling a sprint in seeking to pull together views on exactly that,” said Quarles.
He added that a joint framework for supervision is a “high priority” and said he expects to have some results “soon.”
Quarles’ comments come as American financial authorities grapple with how to respond to the exponential expansion of cryptocurrency. Regulators are also concerned about the market’s dizzying volatility and the lack of an overarching national supervisor.
Acting Comptroller of the Currency Michael Hsu told the House Financial Services Committee last week that the OCC, FDIC, and Fed have explored forming a “inter-agency” committee solely focused on crypto policy.
On May 18, Hsu said that he has begun a review of recent OCC rulings concerning banking licences awarded to crypto firms Anchorage and Paxos.
A race for regulations
But while regulators worry about investor protection, banks and financial service providers are also facing pressure from consumers and institutions eager to access the crypto market, according to the Financial Times.
Leading U.S. bank chiefs on Tuesday made cautious remarks about dealing in cryptocurrency ahead of a scheduled appearance today before a Senate committee.
Citigroup’s CEO, Jane Fraser, stated that the bank was taking a “measured approach.” “Before we engage with cryptocurrencies,” she added, “we see it as our responsibility to insure we have clear governance and controls in place,” deferring to authorities.