WASHINGTON—The Independent Community Bankers of America (ICBA) is urging the Commerce Department to recognize what it says are the risks posed by digital assets — including a U.S. central bank digital currency — as policymakers consider a regulatory framework.
In a comment letter to the department amid ongoing turmoil in the crypto markets, the ICBA reiterated its call for policymakers to “harmonize oversight” of crypto-assets, including stablecoins, and expressed its opposition to the formation of a U.S. 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 said in a statement. “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.”
Specific Points Made
In its letter, the ICBA told the Commerce Department:
- Digital assets present numerous significant threats, including financial crimes and risks for financial stability, as illustrated by recent market volatility.
- Stablecoins exist in an unregulated space and should be brought into the federal banking regulatory perimeter.
- Federal banking and market regulators should collaborate on a comprehensive regulatory framework for digital assets, which will promote responsible innovation.
- Community banks serve a vital role in providing access to financial services and payments innovation, including through their support for the development of FedNow.
- Community bankers oppose a U.S. CBDC, which would disintermediate community banks while introducing costs and risks far exceeding any benefits to consumers, small businesses and the broader economy.