According to a public letter from the U.S. Comptroller of the Currency, the federal group responsible for the security of the banking system, banks are now allowed to hold cryptocurrencies.
This does not mean that you will stack Sats into an FDIC insured account in Chase. Instead, banks will be able to offer cryptocurrency portfolios and “hold the keys associated with cryptocurrency,” according to the letter from Senior Deputy Comptroller and Senior Advisor Jonathan Gould.
Gould sent the letter, acquired by CoinDesk, to an unnamed recipient. In it he describes how banks can hold the cryptocurrency on behalf of clients in the same way, for example, they would keep their jewelry in a deposit box.
“The OCC recognizes that as financial markets become increasingly technological, there is likely to be an increasing need for banks and other service providers to take advantage of new technologies and innovative ways of providing traditional services on behalf of customers, “Gould wrote.
Why the sudden move towards crypto? Current OCC chief Brian Brooks is a former cryptocurrency exchange executive-turned-regulator and his experience, and his contacts in Silicon Valley, have led him to improve conditions for crypto on Wall Street.
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This decision, as they say, is probably not good for Bitcoin.
Overall, anything that smacks of potential regulation takes cypherpunks up the wall and this letter, while great for people who want to convert fiat currency to crypto and vice versa, basically says that banks will have much more control over how and When Startups and Businesses Businesses can store and transact in crypto.
Gould wrote that the letter “reaffirms the OCC’s position that national banks can provide permitted banking services to any legal business of their choosing, including cryptocurrency businesses, as long as they effectively manage the risks and comply with applicable law.”
Markets rose in the news with BTC peaking at $ 9,400 and Ethereum getting a small boost.
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