U.S. agencies are racing to align their policies on Bitcoin and cryptocurrency-related issues and build out comprehensive crypto regulations, Federal Reserve Vice Chair of Supervision Randal Quarles said on Tuesday.
As Reuters reported, Quarles was answering a question about the illicit use of cryptocurrency during a meeting of the Senate banking committee. He spoke about whether issues related to cryptocurrency were being addressed.
“We along with the OCC and the FDIC are engaged right now in what we are calling a sprint in seeking to pull together views on exactly that,” said Quarles.
He added that a joint framework for supervision is a “high priority” and said he expects to have some results “soon.”
Quarles’ remarks come as American financial regulators struggle to respond to the explosive growth in crypto. The market’s dizzying volatility and the lack of an overarching national supervisor are further concerns preoccupying regulators.
Last week, Acting Comptroller of the Currency Michael Hsu told the House Financial Services Committee that the OCC, FDIC, and Fed have discussed an “inter-agency” team focused exclusively on crypto policy.
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On May 18, Hsu said he had initiated a review of recent OCC orders around banking charters issued to crypto companies, Anchorage and Paxos.
A race for regulations
But while regulators worry about investor protection, banks and financial service providers are also facing pressure from consumers and institutions eager to access the crypto market, according to the Financial Times.
Leading U.S. bank chiefs on Tuesday made cautious remarks about dealing in cryptocurrency ahead of a scheduled appearance today before a Senate committee.
Citigroup was taking a “measured approach,” said the bank’s CEO Jane Fraser. “Before we engage with cryptocurrencies,” she said, “We see it as our responsibility to ensure we have clear governance and controls in place,” batting the problem over to the regulators.