US regulatory certainty versus uncertainty for crypto and blockchain

Jason Brett and Whitney Kalmbach

This chapter will provide an overview of the key regulatory decisions as well as the legislative bills that impacted the cryptocurrency and blockchain industry in the US in 2020. Regulatory and supervisory technical developments in the US have included the introduction of HR2211. The Digital Currency Study Act 2021 provided congressional support for the Federal Reserve to actively evaluate alternatives to paper currency, including a Central Bank Digital Currency.

REGULATORY UPDATES OF NOTE FOR DIGITAL ASSETS

2020 was a dynamic year for regulatory updates related to cryptocurrency. On July 22, the Office of the Comptroller of the Currency (OCC), the regulator for all national banks that is part of the US Department of the Treasury, published OCC Interpretive Letter 1170 (OCC, 2020), which clarified that national banks and federal savings associations have the authority to provide cryptocurrency custody services for customers. The letter explained how the OCC has authorised custody of both physical objects and electronic assets. They specifically recognised the importance of digital assets and the authority for banks to provide safekeeping for such assets since 1998. Providing