US regulator allows banks to offer crypto custody services.

The Office of the Comptroller of the Currency (OCC) is allowing all nationally chartered banks in the US to provide custody services for cryptocurrencies.

Any national bank can hold onto the unique cryptographic keys for a crypto wallet, clearing the way for national banks to hold digital assets for their clients, Senior Deputy Comptroller and Senior Counsel Jonathan Gould wrote in a public letter dated July 22. The letter marks a major development for the crypto industry. Previously, custody was the province of specialist firms, such as Coinbase, which typically needed a state license to offer large investors the service of crypto custody.

 

Regulated financial companies that already provide similar custody can now provide these services. 

According to the letter, now, large, regulated financial companies that already provide similar custodial services for stock certificates and the like could also offer crypto custody services. The letter, which appears to be addressed to an unidentified bank or similar entity, noted that banks “may offer more secure storage services compared to existing options.” Both consumers and investment advisors may wish to use regulated custodians to ensure they don’t lose their private keys, and therefore, access to their funds, the letter added. It also specified in the letter that banks entering the space “should develop and implement those activities consistent with sound risk management practices in compliance with the bank’s overall business plans and strategies.”

 

US CFTC plans to develop a “holistic framework” for the crypto industry. 

As reported earlier, the US Commodity Futures Trading Commission has unveiled its strategic plan for 2020-2024. The US regulator plans on developing a comprehensive regulatory framework for the digital currency industry, among other goals. The US regulator revealed its plan to develop a “holistic framework” for the crypto industry. The US CFTC has been at the forefront in advocating for friendly regulations for the crypto industry. These crypto regulations could give a significant boost to the crypto adoption in the country. 

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Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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