Leading financial industry groups have come together to address the regulatory challenges facing US banks in the digital asset market. In a letter addressed to David Sacks, Special Advisor for Artificial Intelligence and Crypto and chair of the President’s Working Group on Digital Asset Markets, the organizations highlighted the need to roll back restrictive policies imposed by federal banking agencies under the previous administration.
The letter emphasized the detrimental impact of these policies on US banks, stating that they have hindered their ability to engage in digital asset-related activities despite having the legal authority to do so. The groups urged the White House to take immediate action to rescind or revise these policies in order to foster innovation and maintain American leadership in the financial sector.
The financial organizations raised concerns about the regulatory actions taken by the Biden administration, including the Federal Reserve’s SR 22-6 policy on crypto-asset engagement, the OCC’s Interpretive Letter 1179 restricting crypto custody, the FDIC’s FIL-16-2022 notification requirement for crypto activities, and joint agency statements warning against crypto-asset risks. They argued that these measures have put US banks at a disadvantage compared to their international counterparts.
To address these challenges, the groups proposed detailed regulatory and legislative solutions to help US banks regain competitiveness in the global digital asset economy. They also called for the inclusion of key banking regulators — the Federal Reserve, the FDIC, and the OCC — in the President’s Working Group to ensure a comprehensive approach to reshaping the US digital asset framework.
In addition to banking regulators, the organizations recommended expanding the Working Group to include other relevant agencies such as FinCEN and OFAC, which play a crucial role in regulating financial crime and sanctions compliance. By bringing these stakeholders together, the groups believe that the US can position itself as a leader in digital assets and financial technology.
The letter concluded with a request for a meeting with Sacks and the working group to discuss next steps and collaborate on developing a strategic roadmap for advancing US banks’ participation in the digital asset market. The financial industry groups are committed to working towards a more conducive regulatory environment that enables US banks to thrive in the rapidly evolving landscape of digital assets.