Yellen Reiterates U.S. Tech-Neutrality Principle for Digital-Asset Policy

Treasury Secretary Yellen today detailed work now under way to comply with the President’s digital-asset order (see Client Report CRYPTO26), laying out principles that will guide the Administration as it builds a framework designed to enhance innovation without harm to financial stability, privacy, equality, and other core objectives.

FDIC Hits Brakes on Crypto Activities

In conjunction with Secretary Yellen’s speech today, the FDIC issued a letter requiring the banks it regulates to obtain prior clearance before undertaking crypto-related activities (broadly defined).  Institutions already engaging in this sector are also told to notify the FDIC, with the agency telling all these banking organizations about the range of risks that concern it as to guide them in considering the best way to undertake these activities.

Brown Seeks Bank Merger Review

Senate Banking Committee Chairman Brown (D-OH) today sent FRB Chairman Powell and Acting Comptroller Hsu a letter asking them to join the FDIC in seeking comment on bank-merger policy (see FSM Report MERGER9).  As in the past, Sen. Brown details the adverse impact he believes large-bank mergers pose to consumers, workers, small businesses, and financial stability, arguing that the agencies should join others, including the Department of Justice (see FSM Report MERGER10), in creating a new construct that does not “rubber-stamp” these transactions.