The Independent Community Bankers of America (ICBA) are encouraging the U.S. Commerce Department to consider potential digital asset risks amid policymakers considering a regulatory framework.
The ICBA is continuing to advocate calling policymakers to coordinate oversight of crypto-assets that include stablecoins while also expressing opposition to the formation of a domestic central bank digital currency.
“ICBA and the nation’s community bankers have serious concerns about the privacy, cybersecurity, and systemic risks posed by cryptocurrency and a possible U.S. central bank digital currency,” ICBA President and CEO Rebeca Romero Rainey noted via comment correspondence to the Commerce Department department regarding uncertainty within the crypto markets. “Policymakers should collaborate to develop a comprehensive regulatory framework for digital assets while utilizing more effective alternatives to a U.S. CBDC, including deposit accounts and faster payments.”
Per the ICBA, digital assets present numerous significant threats, including financial crimes and risks for financial stability; stablecoins exist in an unregulated space and should be brought into the federal banking regulatory perimeter; federal banking and markets regulators should collaborate on a comprehensive regulatory framework for digital assets; and community bankers oppose a U.S. CBDC, which the ICBA maintains would disintermediate community banks while introducing costs and risks.
The ICBA indicated the organization is dedicated exclusively to representing the interests of the community banking industry and its membership via advocacy, education, and quality products and services.