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Jelena McWilliams Defines Her Role As US Regulators Considers Banks Holding Crypto Assets

Jelena McWilliams, Chair of the Federal Deposit Insurance Corporation (FDIC) is a discussion with A team of US regulators. More so, this is as they consider how banks will hold and deal with digital assets.

Furthermore, Jelena McWilliams notes that banks can enter the space with close attention to avoiding risk.

“If we don’t bring this activity inside the banks,..”
“it is going to develop outside of the banks…”
“[Then] the federal regulators won’t be able to regulate it.”

Recall, In May, Federal Reserve Vice Chair of Supervision Randal Quarles reveals’ his organization with the FDIC. Of course, and the Office of the Comptroller of the Currency (OCC) are on a “sprint” to regulate crypto.

Notably, Jelena McWilliams states while speaking at the Money 20/20 conference in Las Vegas. Also, she goes to explain her role in the initiative as on how banks interact with the industry.

“My goal in this interagency group is to basically provide a path for banks…”
“to be able to act as a custodian of these assets,..”
“use crypto assets, digital assets as some form of collateral…

Then, Jelena McWilliams adds,

“At some point in time, we’re going to tackle how and under what…”
“circumstances banks can hold them on their balance sheet.”

Furthermore, Jelena McWilliams goes on to note the easiest issue to tackle. Then, points out a roadmap for letting banks take custody of digital assets. However, she notes that the volatility in crypto may bring difficulties.

“The issue there is…”
“valuation of these assets and the fluctuation in their value that can be almost on a daily basis…”
“You have to decide what kind of capital and liquidity…”
“treatment to allocate to such balance sheet holdings.”

Lastly, Jelena McWilliams concludes.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.