Expectations that the cryptocurrency market will eventually be subjected to greater federal regulation took a step closer to reality with the news that the Biden administration is considering ways to impose bank-like regulations on cryptocurrency companies that issue stablecoins. Consumer safety concerns have introduced calls for legislative and regulatory action to ensure that there are protections in place for end users of stablecoins, and in testimony to the House Financial Services Committee, Chair of the Federal Reserve Board Jerome Powell stated, “Stablecoins are like money market funds, they’re like bank deposits but they are to some extent outside the regulatory perimeter, and its appropriate they be regulated.”
This paper outlines:
- Avenues of adherence for a national bank charter
- Implications of becoming a chartered bank
- Why KPMG can help assisting organizations with regulatory challenges within the digital currency landscape
