Payments

The payments landscape for community banks is changing rapidly as traditional payments converge with new instant payment systems and emerging cryptocurrencies. It is critical for Community Banks to maintain awareness of developments in the payments space to assess new opportunities, mitigate risks, and ensure that their payment strategy aligns with overall business plans.

Payments News

Toomey bill would allow Fed master accounts for stablecoin issuers

Dec. 23, 2022

Retiring Senate Banking Committee Ranking Member Pat Toomey (R-Pa.) introduced legislation on stablecoin regulation, contributing to the debate over crypto oversight that will resume during the next Congress.

Legislation: Toomey’s bill would charge the OCC with creating a federal licensing system for stablecoin issuers. It also contains ICBA-opposed language that would require the Federal Reserve to allow nonbank stablecoin issuers to establish and maintain accounts at the Fed if they are licensed by the OCC or are a state money transmitter business.

ICBA Views: ICBA strongly supports bringing stablecoin issuers and the rest of the crypto sector within the regulatory perimeter, arguing in a recent Medium op-ed that the FTX collapse is a predictable example of the serious risks that digital assets pose. ICBA also has raised concerns about allowing uninsured institutions to have Fed master accounts.