The recent regulatory transparency provided by the U.S. banking regulator, the Office of the Comptroller of the Currency, or OCC, may give interested institutions the confidence to enter the crypto-currency industry.
„For those of us who have been building this ecosystem for years, it’s a great validation of those efforts,“ Diogo Monica, president of the Bitcoin Trader custodial service Anchorage, told Cointelegraph July 23, referring to OCC’s actions.
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„But the real issue here is for the kinds of institutional actors who may have been left out in the absence of clear policy guidance. The OCC that comes out and says that more traditional financial institutions can hold crypto-currencies effectively erases that concern.
The OCC movement is a victory for the crypto industry
On July 22, the OCC established custody of digital assets of U.S. licensed federal banks as a permitted activity. The move provided transparency without changing current guidelines, Morgan Creek Digital co-founder Anthony Pompliano said in a recent YouTube video.
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„Yesterday’s OCC letter is a great victory for the cryptosystems,“ said Monica. „Not only does it bring the necessary regulatory clarity to the digital asset space in the United States, but it also signals to skeptics and the market at large that this asset class is here to stay.
More banks can enter the industry
Will all banks offer crypto custody in the future? „It’s not so much if they will, but how they will,“ said Monica. Holding digital assets for customers today requires specific technical tools and skill, something that banks may not host today, she explained. Blockchain activity and interaction, such as staking, also brings more complications and requirements.
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„In particular, when such actions generate returns, it will be imperative that the trust banks support them through partnerships or sub-depository relationships with a financial services platform such as Anchorage,“ he added.
A promising crypto-custody team, Anchorage obtained USD 40 million from several companies, including Visa, announced in mid-2019. Since then, the startup has released a number of new developments.