the week in crypto policy

Just as the week was wrapping up, news of a cease-and-desist letter from the Federal Deposit Insurance Corporation (FDIC) addressed to FTX and other crypto firms came out.

Here’s a look at some of the crypto-related regulation headlines from the past week.

Push and pull from the Fed

New guidance from the Federal Reserve Board gave crypto firms aiming to get a master account a reason to celebrate. While the guidelines are not hard rules they standardize consideration for master accounts for firms with “novel charters.” Those can include cryptocurrency custody banks and their trade associations.

On the other hand, a Federal Reserve Governor is pumping the breaks on the creation of a US central bank digital dollar (CBDC). In a recent speech, Governor Michelle Bowman appeared to show a preference for the FedNow Service over a US CBDC.

The road to a new EU regulator

The European Union may be close to creating a new anti-money laundering regulator overseeing crypto. The “Anti-Money Laundering Authority” would come from a package of legislation the European Parliament will consider after the ongoing August vacation. If passed, it will be the subject of negotiations with other bodies.

FDIC’s quest for clarity on crypto

The FDIC took action against a number of crypto firms including FTX over “false and misleading statements” about federal deposit insurance. The recent collapse of firms like Celsius and Voyager has raised questions about how the safety of deposits was represented to clients. The FDIC, along with the US Federal Reserve, sent a cease-and-desist letter to Voyager in July stating the now-bankrupt firm falsely transmitted to customers that they “would receive FDIC insurance coverage for all funds provided to, held by, on, or with Voyager.” The agency later reaffirmed the point that Crypto companies are not protected by federal deposit insurance issuing a new fact sheet about it.

In other news related to the FDIC this week, a Pennsylvania Senator said in a letter that the agency “may be improperly taking action to deter banks from doing business with lawful cryptocurrency-related (crypto-related) companies,” for example asking them to avoid providing credit.

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