Administrators are looking to develop a set of crypto bank rules faster than expected, according to a research note from Morgan Stanley published last week.
This follows a joint statement from Federal Reserve, Federal Deposit Insurance Corp. (FDIC) and the Office of the Chief Financial Officer (OCC) on Nov. 23 which set out a “running policy” to improve the rules of the companies that provide services in the crypto environment.
It was known that the regulators were working on this framework, the report said, but their "sense of urgency" on the matter was justified in getting new rules "sooner rather than later."
"Good governance will help promote the adoption of crypto assets and their related services," writes analyst Morgan Stanley. That is good for crypto banks like Silvergate and Signature.
The biggest danger the bank sees is that policymakers are moving too fast and "implementing measures to prevent the adoption of cryptocurrensets," and even then, "regulators may still adopt a more restrictive view of crypto-related (or restrictive).
Services that will fall under this new framework will include “child custody; facilitating customer purchases / sales of crypto assets; loans covered by crypto assets; issuance and distribution of stable coins; and operations involving the seizure of crypto assets on bank balance sheets, "the paper said.
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