Washington, D.C. — Leading financial services trade associations voiced strong support today for the goals of the President’s Working Group on Digital Asset Markets. The organizations include 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. In a joint letter, the Associations propose recommendations to bolster U.S. leadership in digital assets by removing obstacles to bank engagement with digital asset activities.

“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,” the Associations wrote. “The federal banking agencies’ policies and guidance issued over the last few years regarding digital assets activities have hindered banks’ ability to engage in those activities, and, in turn, the competitiveness of the United States financial system, as non-U.S. firms are not subject to similar requirements. Simply put, the United States will not be able to achieve a leadership position in digital assets and financial technology under the status quo.”

The recommendations call for several policy statements and guidance documents issued by the federal banking agencies to be rescinded or substantially revised. These policies restrain banks’ ability to engage in virtually any digital asset-related activity, including offering custody and safekeeping services for digital assets, facilitating customer purchases and sales of crypto-assets, holding crypto-assets on their balance sheets or leveraging public blockchains.

The letter also encourages the Working Group to include the prudential banking agencies — the Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency — in its ongoing work. Involvement by the banking agencies would help ensure that banks can participate in digital asset activities and, thereby, advance U.S. leadership in the digital assets ecosystem in furtherance of the goal of the Executive Order.

Policies and guidance identified that should be rescinded or substantially revised include:

• Federal Reserve
  • SR 22-6, “Engagement in Crypto-Asset-Related Activities by Federal Reserve Supervised Banks”
  • Policy Statement on Section 9(13) of the Federal Reserve Act
  • SR 23-7, “Creation of a Novel Activities Supervision Program”
  • SR 23-8, “Supervisory Nonobjection Process for State Member Banks Seeking to Engage in Certain Activities Involving Dollar Tokens”
• OCC
  • Interpretive Letter #1179, “Chief Counsel’s Interpretation Clarifying: (1) Authority of a Bank to Engage in Certain Cryptocurrency Activities; and (2) Authority of the OCC to Charter a National Trust Bank”
• FDIC
  • FIL-16-2022, “Notification of Engaging in Crypto-Related Activities”
• Joint, Federal Reserve, OCC and FDIC
  • Joint Statement on Crypto-Asset Risks to Banks
  • Joint Statement on Liquidity Risks to Banks Resulting from Crypto-Asset Market Vulnerabilities

To access a copy of the letter, please click here.

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Media Contacts:

Austin Anton
Bank Policy Institute
[email protected]

Sarah Grano
American Bankers Association
[email protected]

Walter Palmer
Americas Focus Committee of the Association of Global Custodians
[email protected]

Laura Peavey
Financial Services Forum
[email protected]

Katrina Cavalli
Securities Industry and Financial Markets Association
[email protected]

Greg MacSweeney
The Clearing House Association
[email protected]

About Bank Policy Institute
The Bank Policy Institute is a nonpartisan public policy, research and advocacy group that represents universal banks, regional banks and the major foreign banks doing business in the United States. The Institute produces academic research and analysis on regulatory and monetary policy topics, analyzes and comments on proposed regulations, and represents the financial services industry with respect to cybersecurity, fraud and other information security issues.

About American Bankers Association
The American Bankers Association is the voice of the nation’s $24.2 trillion banking industry, which is composed of small, regional and large banks that together employ approximately 2.1 million people, safeguard $19.1 trillion in deposits and extend $12.6 trillion in loans.

About Americas Focus Committee of the Association of Global Custodians
Established in 1996, the Association of Global Custodians is a group of 12 financial institutions that provide securities safekeeping services and asset-servicing functions to primarily institutional cross-border investors worldwide. As a non-partisan advocacy organization, the Association represents members’ common interests on regulatory and market structure matters through comment letters, white papers and interaction with legislative and regulatory authorities and financial industry organizations. The member banks are competitors, and the Association does not involve itself in member commercial activities or take positions concerning how members should conduct their custody and related businesses. The Americas Focus Committee operates as an overarching full committee to address all Association matters involving regulatory/market structure issues arising in North or Latin America.

About Financial Services Forum
The Financial Services Forum is an economic policy and advocacy organization whose members are the eight largest and most diversified financial institutions headquartered in the United States. Forum member institutions are a leading source of lending and investment in the United States and serve millions of consumers, businesses, investors, and communities throughout the country. The Forum promotes policies that support savings and investment, financial inclusion, deep and liquid capital markets, a competitive global marketplace, and a sound financial system.

About Securities Industry and Financial Markets Association
SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry’s one million employees, we advocate on legislation, regulation and business policy affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA).

About The Clearing House Association
The Clearing House Association L.L.C., the country’s oldest banking trade association, is a nonpartisan organization that provides informed advocacy and thought leadership on critical payments-related issues. Its sister company, The Clearing House Payments Company L.L.C., owns and operates core payments system infrastructure in the United States, clearing and settling more than $2 trillion each business day.