More certainty is needed on regulations for cryptocurrency and other digital assets given the lack of information, a BNY Mellon Corp. executive told Reuters on Tuesday (Jan 18).
“We’re hoping for more clarity around digital assets,” Emily Portney, BYN’s chief financial officer. “Frankly, it’s a bit confusing about who actually regulates digital assets and especially crypto … and of course exactly what you can or cannot do.”
Her comments spotlight the frustration among the banking sector as U.S. regulators have taken a cautious approach to digital assets. CoinGecko, which tracks the sector, estimates the crypto market cap at more than $3 trillion.
Earlier this month, U.S. a bi-partisan group of lawmakers asked the Commodity Futures Trading Commission to do more to control cryptocurrencies. In a letter to the commission chairman, Democrats and Republicans on the Senate and House Agriculture Committees said the watchdog has a key role to play when it comes to keeping digital currencies from being abused or becoming involved in illegal financial activities.
Bitcoin and ether are commodities that would fall under the CFTC’s purview, the letter says, given their place as the largest digital currencies. The CFTC has been keeping a close eye on the crypto market since allowing Bitcoin futures to start trading in 2017.
Related: Lawmakers: CFTC Must Pay Closer Attention to Crypto
BNY Mellon is not the only financial firm has called for regulators to step up.
Last fall, BCB Group CEO Oliver von Landsberg-Sadie outlined three main hindrances for the widespread adoption of crypto as a currency, as well as an asset for trading. The London-based company provides payments and trading services for the digital asset economy.
In an interview with PYMNTS, he highlighted the obstacles: most consumers do not understand the basics of cryptocurrency; there are limited places to use crypto; and regulatory intervention has ebbed and flowed, depending upon the country.
Read more: Ireland Should Adopt Crypto Regs, BNY Mellon Says
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