Washington, D.C. (Nov. 1, 2021)—Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on the President’s Working Group (PWG) on Financial Markets report on stablecoins.
“ICBA and the nation’s community banks support the work of the President’s Working Group on Financial Markets to ensure a consistent federal regulatory framework for stablecoins that balances their benefits and risks.
“The report rightly incorporates ICBA concerns conveyed to the PWG about the potentially harmful and rapidly accelerating risks to consumers, the financial system, and the economy of continued, rapid stablecoin growth. As ICBA told the working group and has consistently advocated, stablecoins require appropriate federal oversight that closes regulatory gaps regardless of how these digital assets are classified by policymakers.
“A consistent regulatory framework for stablecoins and other digital assets should also work to preserve the separation of banking and commerce, which is jeopardized by Big Tech firms operating payments systems and industrial loan companies that serve as full-service banks without adequate oversight.
“ICBA and community bankers look forward to continuing to work with policymakers to balance the innovation benefits of stablecoins with their safety and soundness risks.”
The Independent Community Bankers of America® creates and promotes an environment where community banks flourish. ICBA is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education, and high-quality products and services.
With nearly 50,000 locations nationwide, community banks constitute 99 percent of all banks, employ more than 700,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding more than $5.8 trillion in assets, over $4.8 trillion in deposits, and more than $3.5 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers’ dreams in communities throughout America. For more information, visit ICBA’s website at www.icba.org.