UBS: Don’t Count on US Crypto Regulations Anytime Soon

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UBS, Switzerland’s largest bank, said in its own report that it expects United States’ lawmakers to take a while before Congress passes cryptocurrency legislation.

The comments, by the Swiss bank’s U.S. Office of Public Policy, followed a hearing before the House Financial Services Committee last week where a U.S. Department of the Treasury official unveiled recommendations in a stablecoin report.

“To fill in regulatory gaps and address financial stability concerns, the regulators would like Congress to develop legislation that regulates stablecoin issuers as banks,” UBS said in the report.

The Federal Reserve Board made it clear last month that it would like instructions from the White House and Congress before proceeding with a digital dollar.

Read more: Fed White Paper Examines Creating Digital Dollar

In a paper release last month, the Fed didn’t make policy recommendations and failed to offer a clear perspective where the bank stands on launching a central bank digital currency (CBDC).

UBS said it will take time for lawmakers to understand the complexities of digital assets and resolve approaches on how the sector should be controlled.

“Regulators could be waiting a long time for Congressional action and in the meantime will need to grapple with these issues using the limited and imperfect authorities they already have,” UBS said in the report.

Still, the bank noted that interest in crypto assets is growing in Congress and the public.

In January, there were reports that the President Joe Biden administration is preparing an executive order that is expected to detail an extensive government strategy on cryptocurrencies.

See more: Biden May Soon Release Executive Order on Cryptocurrency

The order would direct federal agencies to determine the risks and opportunities of digital assets. Under the plan, the White House would play a key role in overseeing policies to regulate crypto assets.