The payments landscape for community banks is changing rapidly as traditional payments converge with new instant payment systems and emerging cryptocurrencies. It is critical for Community Banks to maintain awareness of developments in the payments space to assess new opportunities, mitigate risks, and ensure that their payment strategy aligns with overall business plans.
Federal banking regulators will soon issue a short statement that describes the recently concluded interagency “crypto sprint,” Acting Comptroller of the Currency Michael Hsu said. He also said the OCC will provide clarity on a recent review of crypto-related interpretive letters.
Remarks: Speaking at the Federal Reserve Bank of Philadelphia, Hsu said the message from both is that the agencies are approaching crypto activities carefully and expect banks to do the same—and safety and soundness is paramount.
Quote: “The releases should not be interpreted as a green light or a solid red light, but rather as reflective of a disciplined, deliberative, and diligent approach to a novel and risky area,” Hsu said.
ICBA Position: ICBA is encouraging regulators to collaborate on a comprehensive approach to unregulated platforms and expressed support for efforts to ensure a consistent federal regulatory framework for stablecoins.