US Banking Official Addresses Approach To Regulating Crypto-Assets

The acting Chairman of a US federal agency that supplies deposit insurance to U.S. depository institutions recently gave a speech addressing the regulation of crypto-assets. Among other things, the Chairman noted that federal banking regulators are taking "a cautious and deliberate approach ... to bank participation in crypto-asset-related activity ... for several reasons: (a) the risk of these activities to safety and soundness, consumer protection, and financial stability; (b) the lack of history and familiarity with these assets both in the marketplace and within regulated financial institutions; and (c) the dynamic nature of these assets." According to the Chairman, "before banks engage in crypto-asset-related activities, it is important to ensure that: (a) the specific activity is permissible under applicable law and regulation; (b) the activity can be engaged in [in] a safe and sound manner; (c) the bank has put in place appropriate measures and controls to