On January 10, 2022, the U.S. Government Accountability Office (“GAO”) released a report to the public summarizing its findings on the use of virtual currencies to facilitate human and drug trafficking.  These findings were based on a review of federal agency records and interviews with federal officials from a number of agencies.

American Banker published its annual banking predictions based on survey results from 175 leaders and staff at banks and fintechs, including C-suite and senior business unit executives.  Regarding cryptocurrency, nearly 40% of survey participants reported that they will be “likely/somewhat likely” to offer cryptocurrency services next year.

The House Financial Services Committee conducted an almost-five-hour hearing December 8, entitled "Digital Assets and the Future of Finance: Understanding the Challenges and Benefits of Financial Innovation in the United States" 

On December 6, 2021, the OCC issued its Semiannual Risk Perspective in which it outlined key issues facing banks that pose threats to their compliance with applicable laws and regulations.  The report focuses on five areas: the operating environment, bank performance, special topics in emerging risks, trends in key risks, and supervisory actions. Distributed ledger technology and digital assets are among the trends in key risks.

Banking regulators appear to have begun their “policy sprint” in the crypto space by announcing plans for future guidance and narrowing past guidance.

Hsu Calls for Supervision Before a Crisis Emerges

Commissioner Discusses the Opportunities and Risks of DeFi