After a quick analysis between government agencies, the Federal Reserve Board is planning to resolve the ambiguities that they believe have plagued the country’s digital asset regulation.
In the announcement on November 23, the Board of Governors of the Federal Reserve System Said It recently conducted a series of “policy sprints” in cooperation with the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency to address the issue of regulatory clarity in the crypto sector. Inter-departmental work includes deepening the understanding of crypto-asset terminology, identifying potential risks, and analyzing the existing regulatory framework to determine whether any changes are required.
According to the Federal Reserve, these three agencies plan to resolve “whether certain crypto-related activities carried out by banking organizations are legally legal” in 2022, and may also adjust existing custodial services, purchases, and transactions. Compliance and implementation standards of laws and regulations. Sell cryptocurrencies, crypto mortgages, HODLing, and issue stablecoins.The three are still going to consult Basel Committee on Banking Supervision, A global committee composed of bank supervisors and central banks, advises banks considering holding cryptocurrencies.
The Federal Reserve stated: “The emerging crypto asset sector brings potential opportunities and risks to banking institutions, their customers, and the entire financial system.” Identify and evaluate key issues related to potential crypto asset activities conducted by banking organizations.”
The announcement follows a report of the President’s Financial Markets Working Group on November 1, which indicated that there is an “urgent need” for legislation to Address potential financial risks Stable currency. At present, there seems to be a legislative tug-of-war between US government agencies in regulating the encryption space, and there are great forces behind the US Securities and Exchange Commission and the Commodity Futures Trading Commission.
After Richard Clarida is expected to leave, starting from 2022, about half of the seats on the Federal Reserve Board of Governors may be filled with fresh blood. On November 22, President Joe Biden announced that he would be Nominate Jerome Powell for re-election As the chairman of the Federal Reserve, it may last until 2026.
However, because Powell is a current board member, the President of the United States may still have three vacancies to fill during his first term.Monday, the White House Said Biden’s goal is to announce his selection of these positions and the Fed’s oversight vice chairman in early December, with a focus on “improving the diversity of the board of directors.”
Senate Banking Committee Announce Today, Powell will testify with Secretary of the Treasury Janet Yellen at a hearing on November 30 to resolve the issue of oversight of the Federal Reserve and the Treasury under the Coronavirus Aid, Relief, and Economic Security Act. However, to be confirmed as the next Fed chairman, Powell still needs to attend the hearing of the same committee before the Senate can vote on his nomination.