While regulatory efforts for Bitcoin (BTC) and cryptocurrencies continue in the USA, new statements came from FDIC Deputy Chairman Travis Hill.
Making an official statement at this point, Travis Hill pointed out that cryptocurrencies exist and are used in many sectors, including banking, and called on the SEC to provide more regulatory clarity in the field of crypto.
Hill emphasized the importance of defining industry-related terms to facilitate regulation and increase innovation covering the digital asset sector and called for this definition.
Expressing concerns about the SEC's broad interpretation of “cryptocurrency assets”, the FDIC vice chairman continued his words as follows.
“The SEC's definition of “cryptocurrency asset” is extremely broad and can be read to include not only blockchain-native assets but also tokenized versions of real-world assets. Therefore, there must be a clear common definition of crypto assets and related concepts.
“This is where we need to do our homework and make sure we understand the implications of new technologies like crypto that could reshape banking.”
The FDIC deputy chairman recently underlined the importance of distinguishing between the use of cryptocurrency, blockchain and distributed ledger technologies by banks, arguing that banks seeking to use these technologies for traditional banking activities should not face the same regulatory hurdles as banks engaging in crypto-related initiatives.
*This is not investment advice.