U.S. FDIC official urges better digital asset policies
Travis Hill, Vice Chairman of the Federal Deposit Insurance Corporation (FDIC), stated that if blockchain technology is not regulated properly, bank customers and the US economy could miss out on opportunities. Tokenization of bank deposits and other real-world assets (RWA) could make it possible for financial transactions to be settled in real-time at any time. Additionally, it would provide programmability of payments, allowing for intraday repurchase (repo) transactions and shortening settlement times for certain bond issuances and many other transactions. Consumers could also benefit from using programmable payments instead of custody. Global standards are being directly or indirectly established, with many non-US jurisdictions actively participating in this area, and the US faces the risk of relinquishing influence at this critical stage. Hill stated that regulators need to provide guidance and maintain consistency so that any form of deposit is treated equally. He criticized the controversial Staff Accounting Bulletin 121 (SAB 121) of the US Securities and Exchange Commission (SEC).
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