Partners Christopher Paridon and Kristin Lee spoke to Global Banking Regulation Review for a three-part article series looking at the 2023 banking regulatory landscape. In the first article—focusing on crypto—Kristin noted that during this year, it is likely that banking agencies will remain “extremely cautious with respect to digital assets and crypto initiatives.”
“Traditional banks have weathered the crypto winter very well, and I believe that the federal banking agencies are going to be very hesitant to increase the connectivity with the traditional banking sector,” Kristin said.
Christopher noted he is keeping an eye on a question of eligibility for and transparency around Federal Reserve master accounts raised by a lawsuit brought by crypto-mediated challenger Custodia.
“It will be interesting to see what’s going to be shaped by the courts, versus what information may be volunteered by the Federal Reserve, and whether any changes to existing Federal Reserve guidance or positions are forthcoming,” Christopher said.
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