Congress members have expressed in a memo their belief that Federal banking agencies should not impose capital maintenance requirements on financial institutions offering custody services for digital assets. This suggestion aims to alleviate the burden on these institutions and promote the growth of digital asset custody services. The memo highlights the unique nature of digital assets and argues that subjecting them to the same capital requirements as traditional assets would hinder innovation and potentially stifle the development of the digital asset industry. The Congress members propose a more flexible approach to regulation that recognizes the distinct characteristics of digital assets and encourages their continued integration into the financial system.
HomeDIGITAL ASSETS REGULATORYworldwide-stablecoinUS Congress members urge financial authorities to invalidate SEC’s SAB 121