The CEO of bank of America, brian t. MoynihanI recently confirmed that the company is not offering crypto-related services in the near future. While he recognized the importance of digital payments in today’s economy, he said regulatory hurdles have prevented banks from penetrating deeper into the sector.
A hesitation due to heavy regulations
Gentlemen of the World Economic Forum on Saturday, Moynihan I asked him about it bank of America “May or may not” do with cryptocurrencies in the future.
According to the Bank of America CEO’s statement: “We can’t do it. By regulation, we are not allowed to engage”. I have established that the bank is completely digital. Thus, it does not need cryptocurrencies to provide modern financial services.
The legal challenges have been a recurring theme in the US crypto industry. That this is due to concerns about the issuance of specific tokens that Ripple or lending practices of some platforms such as coinbaseblockchain companies around the world are ready for the next crackdown on SEQ.
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It would be easier if the private sector knew which cryptocurrencies and tokens were classified as illegal titles. However, it still lacks clarity. This is why US President Joe Biden I published a decree in March to organize the development of a regulatory body around the digital asset space. Additionally, Senator Cynthia lights is about to unveil a bill to precisely organize the regulatory classification of digital assets and the jurisdiction of federal entities.
Until such legislation is passed, bank of America insisted on writing simple crypto market research reports. Products narrated by cryptocurrency banks are currently not available on the table.
The bankers who don’t exist have entered the cryptosphere
Over the past 12 months, Wall Street has seen many institutions turn to cryptocurrencies. In March, the BNY Mellon I have reported the main custody contract of crypto pour him stablecoin USDCand last year the bank created a cryptocurrency-based digital business unit.
outside, Goldman Sachs embraced crypto and now offers bitcoin-backed lending facilities. otherwise, JP Morgan also made its mark on cryptography. The investment bank announced its optimism about the actions in figures to report other classes of business, hinting at a strong push for the industry. On the other hand, it was interest in cryptocurrencies that came at a time when asset prices were falling sharply.
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