- U.S. regulators are exploring ways for traditional banks to hold bitcoin.
- Banks’ BTC holdings could be used for client trading, as collateral for loans, or held as assets in their balance sheets.
- “I think that we need to allow banks in this space,” the FDIC chairman said.
A team of U.S. bank regulators is trying to provide a more straightforward path for banks to engage with and hold bitcoin, the Federal Deposit Insurance Corporation (FDIC) chairman said.
FDIC chair Jelena McWilliams told Reuters in an interview on October 26 that a team of U.S. bank regulators is working on a more precise set of rules for banks interested in engaging with Bitcoin and cryptocurrency. That would clarify how U.S. banks could hold BTC in custody to facilitate client trading, use it as collateral for loans, or even hold them on their balance sheets.