The CEO of bank of America, Brian T. Moynihanrecently confirmed that the company will not be offering crypto-related services in the near future. While he recognizes 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
At the World Economic Forum on Saturday, Moynihan was asked about what 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”. He added that the bank is fully digital. Thus, it does not need cryptocurrencies to provide modern financial services.
Regulatory challenges have been a recurring theme in the US crypto industry. Whether due to concerns about the issuance of specific tokens such as Ripple or lending practices of some platforms such as Coinbaseblockchain companies around the world are ready for the next crackdown on DRY.
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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 has published a decree in March to help organize the development of a regulatory framework around the digital asset space. Additionally, Senator Cynthia Lummis is about to unveil a bill to carefully organize the regulatory classification of digital assets and the jurisdiction of federal entities.
Until such legislation is passed, bank of America will insist on writing simple crypto market research reports. Products such as cryptocurrency bank accounts are currently off the table.
The banking giants that entered the cryptosphere
Over the past 12 months, Wall Street has seen many institutions turn to cryptocurrencies. In March, the BNY Mellon won the main custody contract of crypto for the stablecoin USDCand last year the bank created a cryptocurrency-focused digital asset unit.
In addition, Goldman Sachs embraced crypto and now offers bitcoin-backed lending facilities. Otherwise, JPMorgan also made its mark on cryptography. The investment bank announced its optimism on digital assets relative to other asset classes, hinting at a strong push for the industry. On the other hand, his interest in cryptocurrencies came at a time when asset prices were falling sharply.
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Bank of America CEO confirms that the bank has no plans to offer crypto services anytime soon. – Latest News
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