WASHINGTON—During DC Fintech Week, Treasury Department Counselor Craig Phillips indicated the department is coordinating with other regulators to develop cryptocurrency policy and reiterated the importance of the U.S. modernizing its payment systems.
While cryptocurrencies, such as Bitcoin, can have positive implications, Phillips said there are issues that need to be addressed, specifically related to criminal activities, and that Treasury is working to coordinate with other agencies and international bodies on a regulatory approach to digital assets.
NAFCU, which attended the event, acknowledged fintech can produce real benefits to consumers, including increased speed, convenience and new product offerings that make it easier for them to manage their financial lives, but also said it continues to urge lawmakers and regulators to ensure a level playing field between fintech companies and financial institutions, from data security to consumer protection.
Phillips also acknowledged the need for improved payment systems in the U.S. and referenced the Federal Reserve's proposal to develop a 24/7/365 RTGS (real-time gross settlement) service to facilitate interbank settlement of faster payments.