WASHINGTON, D.C.— Phillip Basil, Director of Economic Growth and Financial Stability for Better Markets, released the following statement on the filing of a comment letter to the Federal Reserve regarding proposed special purpose “payment accounts”:

“Banks offer a tremendous benefit to our economy, but crypto companies have no economic benefit or legitimate purpose. They are offering no real improvements to the financial system, while at the same time are seriously harming retail investors and facilitating a range of criminal activities. The Fed’s proposed introduction of special purpose payment accounts is a clear giveaway to the crypto industry and undermines the Fed’s core mission of supporting our banking system. More business for crypto means less bank deposits, less bank lending, and less support for the real economy.

“This proposal is an irresponsible and reckless use of the authorities provided to the Fed, and it should not be expanding the selection of services it offers to satisfy the wishes of the crypto industry. Just because the Office of the Comptroller of the Currency and several States are irresponsible enough to provide crypto companies with special purpose charters does not mean the Fed should now be going out of its way to create a carveout service for them.

“The Fed should rescind this proposal and renew its commitment to supporting our banking system and the American economy.”

Read the comment letter here.

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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.