US lawmakers push for statutory rules on banks and crypto

A new CRS report urges Congress to set clear statutory boundaries for banks engaging with crypto assets instead of leaving the matter to regulators that keep changing their stance. Since 2017, federal agencies have repeatedly shifted between permission and restriction, creating uncertainty that lawmakers now want to end.

The core issue is whether crypto activities qualify as legitimate banking business and whether they threaten financial stability. CRS warns that losses from volatile crypto collateral or underwriting could ultimately affect deposit insurance and credit availability, creating moral hazard.

Two versions of the CLARITY bill are already under consideration. The House-passed draft would let banks use blockchain for any activity already allowed by existing law and broaden the list of permitted crypto operations for bank affiliates. The Senate version goes further, explicitly authorizing banks to act as underwriters and dealers of digital assets.

The report highlights additional concerns such as pseudonymity complicating anti-money-laundering efforts and sharp price swings that could trigger large bank losses. It outlines three possible paths: continued agency discretion, a dedicated law, or a hybrid approach.

Based on information from https://cryptonews.net