Quarles Fed Vice Chair Mentions... "Announcement Soon"
"Establishing a Common Regulatory Framework is Top Priority"
Major Banks United in Preparing to Launch Cryptocurrency Products
[Asia Economy New York=Special Correspondent Baek Jong-min] Randal Quarles, Vice Chairman of the U.S. Federal Reserve (Fed), stated that "the Fed is working with the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) to establish a common stance on it (cryptocurrency)."
Meanwhile, major banks that have not yet started cryptocurrency trading say they are expanding research and related product development on cryptocurrencies as customer demand increases.
According to major foreign media on the 26th (local time), Vice Chairman Quarles appeared at a Senate Banking Committee hearing the day before and predicted that "a common regulatory framework (for cryptocurrency) is urgently needed and could be announced soon."
Fed Governor Lael Brainard emphasized the necessity of introducing a digital dollar due to concerns about the side effects of cryptocurrencies, but Vice Chairman Quarles suggested the possibility of direct regulation. Quarles’ remarks came amid concerns about investor losses as cryptocurrency prices fluctuate sharply.
The White House was also reported to have received a briefing from the Treasury Department earlier this month on the cryptocurrency market situation and discussed regulation.
Amid regulatory agencies’ moves to strengthen supervision, demands from bank consumers and institutional investors to ease restrictions on cryptocurrencies are growing.
Bank executives who appeared before the Senate that day highlighted that they are not engaging in cryptocurrency trading but indicated that they are preparing to launch related products.
Brian Moynihan, CEO of Bank of America (BOA), explained, "We are keeping a distance from cryptocurrency businesses such as Bitcoin, but we are evaluating the demand for related products from individuals and institutional investors as well as the opportunities and risks."
Moynihan also introduced the fact that BOA holds about 60 patents related to blockchain.
Jane Fraser, CEO of Citigroup, also mentioned, "Before dealing with cryptocurrencies, it is our responsibility to secure a transparent and controllable system," adding, "We are making efforts to understand the cryptocurrency market."
Wells Fargo explained, "Cryptocurrency has already emerged as an alternative investment asset. We are closely monitoring the development of cryptocurrency-related products."
Gary Gensler, Chairman of the Securities and Exchange Commission (SEC), explained in a pre-statement released before his Senate appearance that banks are caught between financial consumers and regulatory agencies.
Cryptocurrency prices showed a slight upward trend that day. Bitcoin was trading at $39,000, up 4%, Ethereum at $2,700, up 6%, and Dogecoin at 34 cents, up 2%.
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