Financial institutions back administration's efforts on U.S. digital assets leadership

Leading financial services trade associations have expressed strong support for the President’s Working Group on Digital Asset Markets. These organizations, including the Bank Policy Institute, American Bankers Association, Americas Focus Committee of the Association of Global Custodians, Financial Services Forum, Securities Industry and Financial Markets Association, and The Clearing House Association, aim to bolster U.S. leadership in digital assets by removing barriers to bank engagement with digital asset activities.

In a joint letter, these associations stated: “We strongly support the President’s goals for the PWG, and we stand ready to assist you as you proceed with the work plan outlined by the President in his January 23rd Executive Order.” They highlighted that existing federal banking agencies’ policies have hindered banks' ability to engage in digital asset activities. This has affected the competitiveness of the U.S. financial system compared to non-U.S. firms not subject to similar requirements.

The recommendations include rescinding or revising several policy statements and guidance documents issued by federal banking agencies. These policies currently limit banks' ability to engage in digital asset-related activities such as offering custody services for digital assets or facilitating customer purchases and sales of crypto-assets.

The letter also urges the inclusion of prudential banking agencies like the Federal Reserve, Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency (OCC) in ongoing discussions. Their involvement would help ensure banks can participate in digital asset activities and advance U.S. leadership in this sector.

Specific policies identified for revision include:

- Federal Reserve's SR 22-6 regarding crypto-asset-related activities

- OCC Interpretive Letter #1179 concerning cryptocurrency activities

- FDIC FIL-16-2022 on engaging in crypto-related activities

For more information or a copy of the letter, interested parties are encouraged to contact representatives from each association involved.